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Low price of Motorola Q may contribute to its huge success!
July 26, 2006 [MS Smartphone] | By Edward J. R.

Let's face it: PDA phones (phones with touch screen and powered by Pocket PC OS) are not cheap and they are aging quickly usually anyway (after 6 months = already outdated). So why not to buy cheap smartphone (no touch screen and powered by MS Smartphone OS) instead? It looks like Motorola managed to achieve low cost of production of Q and this low cost is passed on to end customers resulting in low price.

An analysis of market research company iSuppli indicates,that low cost of Motorola Q may be major factor in accomplishing mass sales and overall success:

The smart phone’s combination of low pricing and inexpensive design will be key assets for Motorola as it vies for market share against established rivals, iSuppli believes.

"Given the Q’s price point, and Motorola’s overall market leverage, this phone likely will succeed in reducing the pricing for smart phones overall—boosting acceptance among users who might flinch at the higher-than-$200 price point established by previous Personal Digital Assistant (PDA)/smart-phone products." said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.

The smart phone’s combination of low pricing and inexpensive design will be key assets for Motorola as it vies for market share against established rivals, iSuppli believes.

[...]

Looking at the voice communications portion of the phone, the design revolves around a Qualcomm Inc. MSM6500 digital baseband chipset and a Texas Instruments Inc. PTWL93017xxxx analog baseband chipset. Qualcomm’s MSM6500 is relatively new, but iSuppli has seen the TI chipset before in Motorola’s V635 phone.

The Q’s memory subsystem consists of two Multichip Modules (MCPs): one from Intel that has a 256Mbit NOR- type flash memory and a 64Mbit Pseudo SRAM (PSRAM), and the other from M Systems Flash Disk Pioneers Ltd. that has a 128Mbyte Flash DiskOnChip, plus a 64Mbit 1.8-Volt Synchronous DRAM (SDRAM).

[...]

Motorola predicts that Q shipments in 2006 alone will amount to more that 5 million units, with 3 million shipped in the fourth quarter.

To read this analysis from iSuppli Corporation in full click here.


(on photo above: employee of Motorola - in Moto-talk called "XPRT" - presents to us Motorola Q smartphone)


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