Broadcom BCM2157 to enable $75 Android phones within 3-6 months

Posted by – December 26, 2010

Android robot logo.
Image via Wikipedia

It’s ARM11 at up to 800Mhz, HVGA 480×320 or WQVGA 400×240, 3G integrated on the chip, 65 nm digital CMOS process, support for Android 2.2 and up. That is what is claimed by Broadcom representatives in a Fortune Magazine CNN post.

To be clear, That sub $100 price is not the cost of materials, it is the suggested retail price after the manufacturers (and carriers) have taken their profits.

This could enable Android to accelerate into first position in worldwide Smartphone sales by next year in front of Symbian even, generating most of possibly as many as 500 million smartphones to be sold next year (up from 269 million smartphones sold in 2010 and 173 million in 2009).

Thus as Android might have been activating 30 thousand smartphones per day (less than 1 million per month) back on 1st January 2010 and has officially been announced to be activating 300’000 smartphones per day (9 million per month) by 1st January 2011 (900% growth rate year over year), if Android expansion accelerates as can be expected with this type of platform to reach sub-$100 and sub-$75 unlocked sales prices to reach China, India and other developing markets during 2011, it may reach an activation rate of closer to 1 million units per day by 1st January 2012 yet another 300% growth rate in a year.

Within a year, the smartphone could thus become the dominant fastest selling device to access the Internet in front of the laptop. While cheaper Android devices means the developing world can finally afford access to smartphones (better than Symbian stuff), it also means carriers in rich countries may have to come up with new tricks if they want to continue making huge profits on wireless phone services. As sub-$100 Android phones can be bought, consumers in rich countries will also decide to buy those with pre-pay services, more and more data centric, and that could trigger the disruption of the “carrier-subsidized” Android super phone carrier model. Which model is not as much about a carrier “subsidizing” a phone than it is about a consumer over-paying on 2-year contracts on a phone device presented as overpriced if bought unlocked.

If you thought Android’s huge growth was impressive while most phones are bought with 2-year $2500 contracts, just wait for Android’s continued growth once most of them will be bought below $100 without any contracts needed.

Found via: