Manufacturers of chips embedded into cellphones are saying that as technology processes improve, as well as better recognition of what consumers really want, could very well result in handsets being priced at $20 or lower within the next two years.

With this will come the realization that lower-cost cellphones will not have all the full-blodded features that the top-of-the-line smartphones have, but there is a large group of existing and potential cellphone users throughout the world who would happily settle for a handset that will reliably allow them to just make and receive calls. (Contrary to what some may think, many people just want to use their cellphones to talk, and nothing else. Hard to believe, I know, but it's the truth!)

According to one industry association, there are about 3.5 billion people worldwide that live in coverage areas that can't afford a cellphone.As a result, manufacturers are saying they will be able to produce "basic" phones at a lower cost to them which will translate into lower costs for consumers. Companies such as Infineon, Motorola, and Philips have stated they are looking to place the key functions of a mobile phone embedded into a single chipset at a cost to them of about $5.