Entry-level Android smartphones Cost will drop to $70 within next two years: predicts Google

Android phones which are seeing 850,000 activations a day (or 310 million a year. The number of Android device activations had roughly doubled every six months), will be in every pocket within the next two years.

In his Keynote speech at Mobile World Congress 212, Barcelona, Google's Executive Chairman Eric Schmidt predicted that: The cost of entry-level Android smartphones will drop to around $70 — or £44 — within the next two years.

This decline in prices, will be fuelled as a result of falling component prices. The fall in component prices will also lead to massive reduction in need for feature phones.

Making the Android phone pricing easier to understand to a common Joe, Schmidt sued the following words:

"Next year's $100 phone is this year's $400 phone. Many people are working on phones in the $100 to $150 range. When you get to the $70 point you get to a huge new market. Smartphones will cost what feature phones cost now next year".

Google sees a need to manufacture more Android phones, as courtesy its Google-specific features such as the Android Market, people around the world will want to have Android phones. This in Google’s view will elevate Android phones among competition.

In 2012, Google intends to expand the full Android ecosystem with Ice Cream Sandwich on every device, in the hope of bringing more non Google-certified manufacturers into the fold. --------

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