Mobile vendor strategies - 1/2/06

Microsoft has launched the idea of a Phone PC, to fight against the digital divide and probably also to oppose the $100 PC launched by MIT end of 2005, equipped with Open Source software.

Nokia will stay out of low-cost handset initiatives. Its increased sales of entry-level handsets were the main reason behind the decline in its ASP (to €99 in 4Q05) and lower margin (-5%).

According to Motorola, India, China, Brazil, and Russia offer a 2.7bn people market with huge needs for mobile devices in the next three years. Motorola unveiled the SLVR, a sleek handset that features Apple's iTunes music service.