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However, we furthermore assumed that mechanical components (plastics, metals, and other custom devices) were manufactured in low regional cost areas in this case, China. Labeled as Made in Korea, it is assumed that both final assembly took place in Korea, but also printed circuit board population. This volume assumption is used in our analysis primarily to calculate amortization of tooling and other NRE charges. However, this model, as it is one of many by Samsung, and it is assumed that flip phones are more tha mainstay of Samsung, we are assuming a low-volume of 500K units over the lifetime of this phone. Furthermore, GPRS phones, such as this model, are expected to represent approximately 57% of the approximately 705 Million phones expected to ship in 2005. Samsung Electronics' global market share in overall handset market share remained relatively flat, fluctuating from approximately 11 to 13% during the course of 2004.

This is probably because it is aimed more at the generic giveaway end of the market - where marketing messages are rarely specific and phones are design to be broadly acceptable in function and style. With the exception of the 180 degree rotating camera, and the integrated LED 'flash' lighting, this phone is a pretty ho-hum specimen with no real standout - features or clear marketing message from Samsung as to target market.

Furthermore, although Samsung has a number of low-end generic silver clamshell designs, it makes sense to have a candybar form factor option at this end of the spectrum, as candybar phones are inevitably less complex mechanically and typically have lowest overall cost both in terms of materials and manufacturing. The low-end of the spectrum has indeed evolved. This model represents what has happened to the 'low-end' of the spectrum - with color STN displays (rather than B&W) and with camera (the norm now), where before there was none. Candybar phones from Samsung seem to be pretty rare - but Samsung has had candybars holding down the low-end of their phone spectrum for some time now.