Motorola predicting 20 Million cheap phone sales by end of 2006

Motorola said on Monday it expects to have shipped a total of 20 million of its ultra-cheap handsets for emerging markets by the end of 2006, shipping more than 10 million this year alone.”We’ll probably be doing 20 million GSMA handsets when 2006 is over,” Motorola handset chief executive Ron Garriques said at the 3GSM wireless trade show here.

“That’s cumulative sales,” he said after a presentation.

He said Motorola sold between 8 and 9 million ultra-cheap handsets in 2005. These handsets, initially priced at below $40 and now selling for less than $30 at wholesale prices, have been developed for an emerging markets project from the GSM Association (GSMA) which groups the world’s GSM mobile carriers.

In two different projects, carriers from emerging markets have committed to buy at least 12 million units from Motorola. Garriques’ comments made clear they ordered much more.

The U.S. cell phone producer, the world’s second biggest, claims it can make healthy profit margins on even the lowest priced phones.


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