...sub-$5 system solution – an integrated hardware and software platform constituting all the electronics needed in a mobile phone – that will drive handset costs below $20... Currently, the lowest cost mobile phones on the market are just below $40.
This would obviously increase demand. From The Economist:
Azmi Mikati of Investcom, which runs networks in Africa and the Middle East, estimates that the number of users would double in those markets if the cheapest handset cost $30 instead of $60.