Push for $40 smartphones builds momentum, but still faces cost hurdles | TechCrunch

"Affordable smartphones are widely seen as key to narrowing the digital divide in developing markets, where millions of people live within mobile broadband coverage but remain offline, often because internet-enabled devices remain too expensive. Through its Handset Affordability Coalition, the GSMA is working with operators and manufacturers to promote devices priced around $40 to help close that gap."

"The $30-$40 price point is an ambition, based on GSMA intelligence research on affordability and is to be understood as a best effort intent. Rising memory costs are adding urgency and complexity to the effort. The final price of such devices will depend on a combination of factors, including financing schemes and tax policies."

The GSMA is leading an initiative to bring ultra-low-cost 4G smartphones to market at approximately $40, targeting six African countries including the Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda. Major operators like Airtel, MTN Group, Orange, and Vodafone are partnering with smartphone manufacturers to make devices more affordable. Millions of people in developing markets live within mobile broadband coverage but remain offline due to device costs. The Handset Affordability Coalition is working with over 15 manufacturers, with seven expressing interest. Commercial negotiations are underway, though rising memory costs complicate efforts. Final pricing will depend on financing schemes and tax policies.

Read at TechCrunch