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Nokia Reaches High Volumes in Single-chip Phones Sales

Nokia Chief Executive Olli-Pekka Kallasvuo said the mobile phone company has reached high volumes in single-chip mobile phone sales.

“We now have several single-chip phones in the market. It is one of the key factors in our cost competitiveness in cheaper phones,” said Kallasvuo.

The single-chip technology is used to make ultra-low-cost mobile phones, aimed at developing markets. “We are already talking about volumes of tens of millions,” said Kallasvuo.

Mobile phone chip maker Infineon also said a project to supply Nokia with single chips for its ultra-low-cost phones had been delayed.

However, Nokia has said its development of the phones is on target, as it has multiple suppliers for the project, including Texas Instruments.

The mobile phone maker slightly raised its forecast for the mobile phone industry, saying volume would grow 10 percent or more in 2008, having previously forecasted growth of about 10 percent.

“Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell,” Kallasvuo said.