One of the world’s largest mobile chip companies, MediaTek, is focusing its R&D efforts on smartphones at the expense of its feature phone business in another clear sign that the market for budget 3G handsets in countries like China and India is about to explode. Industry sources told Digitimes that MediaTek and its MStar …
More than jst handset price
Non-smart phones have other benefits too.
They don't need use huge amounts of data and are thus much cheaper to operate.
They don't need daily charging.
Re: More than jst handset price
I doubt they will stop making non-smartphone chips - still plenty of demand - but by now these are commodity components with wafer thin margins. Focus has to be on new and shiny things.