Operators in emerging markets tend not to underwrite phones, however. That's why most handsets from major manufacturers end up selling for $50 or more in developing economies, says Steve Lalla, Motorola's vice president of mass market products. (The prices quoted in this story are independent of subsidies and service contracts.)And as U.S. wireless networks open up, prodded by the Federal Communications Commission's recent spectrum auction and open-source mobile platforms like Google's Android, the U.S. mobile market will look more like the rest of the world. That will mean more freedom to move between carriers, but also fewer carrier subsidies, which may make the price of phones more relevant to U.S. consumers.
What you can get for $50
As a result, emerging markets — and the phones popular there — are attracting more attention than ever. Nokia already racks up more than half its annual sales in emerging markets. Its weapon of choice? Phones like the 1200, which retail for as little as 35 euros or $55. "We believe people who earn less than $5 a day should be able to own a mobile phone," says Heikki Koivu, director of Nokia's entry products group.
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