@hsyuts
Thats all R&D Cost, wouldn't the manufacturing cost be less for phones because of less material, small screen, etc.
I know that R&D cost is high initially, but once a company have a phone developed, wouldn't the cost of the R&D on the next phone model come down? Since the company would have the OS and other parts already tuned? The Chinese are able to bring out devices at lower price in that "small space". Now they are even planning to come out with SD800 chips.