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But increasingly, manufacturers are taking advantage of falling component prices to pack even low-priced phones with fun features.
Cisco also gained from lower component prices.
Both Apple and R.I.M., for example, have benefited from falling component prices, especially in flash memory.
He also said he expected to see component prices rise somewhat during the quarter.
On one hand, component prices drop, because you can negotiate better terms.
That allows it to keep little inventory and to take advantage quickly of falling component prices.
Meanwhile, component prices are plunging, overcapacity is rife and margins are meagre.
Some computer industry analysts said that a stabilization of component prices could diminish one factor that has helped Dell recover.
Transatlantic aerobatics Bittersweet ReprintsAvtovaz buys locally too, and it has kept component prices at their pre-crisis levels.
Psion P.L.C. said its full-year profit will be well below analysts' estimates because of a weaker euro and higher component prices, and its stock fell 29percentt.
"Apple's in a really attractive position, where the Mac's component prices are falling but they're able to charge the same prices".
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