Nanotechnology to cut mobile cost

HELSINKI: Top mobile phone maker Nokia could start using nanotechnology in its phones within the next two to three years to help keep costs low amid fierce price pressures, a top official was quoted as saying.

"In order for there to be three billion mobile phones in the world by 2010, costs will have to be on a completely new level," Nokia Chief Strategist Tero Ojanpera told Finnish business daily Taloussanomat on Wednesday.

"Phones below 150 euros are a very important segment for us where we are developing cost effective solutions. They could come from nanotechnology," said Ojanpera.

Nanotechnology deals with manipulating particles one-billionth of a metre in size, and promises benefits from a coating of paint that lasts decades to faster acting and more effective medicines.

Ojanpera said the new technology would only be used in phone components like casings in the first stage.

He said that Nokia sees handset volume growth mainly coming from developing markets in the next five years.

In markets such as these, demand is weighted towards cheaper, lower-end models as consumers are often buying their first phone, meaning it is tougher for companies to squeeze out profits.