Motorola KRZR K1
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Top message: Why do GSM phones wholesale cheaper? by vzwbellstar
Replying to: Re: Why do GSM phones wholesale cheaper? by big_daddy_huah
as an insider in the cell industry I must retort the previous responses. GSM is an inferior technolgy to CDMA in many way. once 3G is available in the US it may rival or even surpass CDMA/EVDO but for the time bein in the US CDMA is the superior tech. the primary reason that CDMA phones are more expensive is that Qualcom ( the Sole provider of CDMA chipsets ) requires royalties for all handsets made with thier tech. thus why Nokia has recently announced their plans to pull out of CDMA. CDMA is awesome but both the towers and the phones are both more advanced and more expensive to produce than GSM phones. thus manufactureres like Motorola and Nokia have place a greater emphasis on GSM as they look at the world wide market not just the relatively small US market. all "emerging Markets" e.g. countries that are evolving and advancing and going hi-tech are implementing cheaper and more universally compatible GSM networks thus the future of wireless will be more GSM focus despite its shortcomings to the (curent) CDMA networks. simpl put Nokia and Motorola can make cheaper GSM handsets with no royalties to Qualcom and reach more customers with less investment than with CDMA. thus GSM will dominate as the advantages of CDMA are disproportionate to the prevalence of GSM worldwide.
GSM is currently trying to catch up in tech. atleast in the USA where the curent EVDO 3G networks from sprint alltel and verizon are far superior to the dismal GPRS/EDGE networks of Cingular and T-Mobile. Similarly the Older handset such as the GSM RAZR V3 are cheaper wholesale than the newer CDMA RAZR V3c and RAZR V3m.
looking to the future CDMA was a superior idea but much Like macintosh vs IBM/Windows/Intel/PC it will fail due to the shear saturation and universal compatibility of GSM and WCDMA 3G networks. Mark My words. the current CDMA netowrk will be little more than an american novelty in 5-15 years and will eventually disapear as we reach a global standard based on GSM/WCDMA
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