New research has found that the price of materials for smartphones, a popular wireless communications device, dropped by 13 per cent last year compared to 2009.
Research firm In-Stat observed that volumes of low-cost smartphones increased amid surging popularity.
According to In-Stat, the biggest costs in a smartphone are its display screen and processor - the price of both dropped sharply in 2010.
The device's memory, camera, software and case are other significant material costs, the research firm confirmed.
Meanwhile, wireless communications manufacturer Apple recently launched the second generation of its iPad tablet computer at an event in San Francisco.
The machine features a faster processor, improved graphics and front and rear cameras, Apple said.
Although the manufacturer currently leads the industry in sales of tablet devices, it is beginning to face competition from rival firms.
Apple chief executive Steve Jobs, who has been on medical leave since January, presented the new wireless communications device at the event.
"We have been working on this product for a while and I just didn't want to miss today," he said.