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Material Prices in Smartphones Fell in 2010

Material Prices in Smartphones Fell in 2010

The price of smartphone materials fell by 13 per cent last year compared to 2009, according to In-Stat, as the production of cheaper handsets increased to meet comsumer demand.

The biggest costs in a smartphone are its display screen and processor and the price of both dropped sharply in 2010, In-Stat said in a statement. Other high material costs are for the device's memory, camera, software and case.

In-Stat analyst Allen Nogee said component prices were also affected by the integration of GPS, Bluetooth, Wi-Fi and sometimes FM radio onto a single chip. All were previously on separate chips, he said.

Also, increased use of free or low cost open-source software played a role in lowering the cost of smartphone software and licensing.

In-Stat projects that half of US mobile phones shipped in 2012 will be smartphones - in 2010, less than 30 percent of US wireless subscribers used a smartphone, according to Nielsen research.

In-Stat didn't reveal the costs for smartphones in the announcement about its report on smartphones, which is available for $3,495.

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