Agere Launches Music Chip For Cell Phones
Agere said its chips would support music players with compact disc quality sound in phones that could have a total component cost as low as $30. In comparison the cheapest phones on the market with similar sound quality require about $100 worth of parts, Forward Concepts analyst Will Strauss estimated.
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Strauss believes Samsung, the world’s third-biggest cell- phone supplier, will likely use the chips to target emerging markets like India and China where bigger rivals Motorola Inc. and Nokia hold more sway.
“This will probably be a new entry for them at the low end of the market,” said Strauss who estimates that cell phones are usually sold wholesale to service providers for about twice the price of their components.
Samsung had no immediate comment.