Well, it seems like a possibility and if so that would potentially blow a hole in the smartphone market which is currently the preserve of high-end handsets like the iPhone.

I noticed an item on the TalkAndroid website reporting on a comment Samsung product development manager Casey Ryan made to the New York Times.

“By next year,” he said, “touch-screen phones, with full Web browsers running the Android operating system will be available for well under $100.”

I assume this refers to a pay-as-you-go price for the basic handset without a contract.

As you can already get a free G1 from T-Mobile on a 18 month contract.

This would represent a signficiant price fall for this class of smartphone and would potentially be very competitive in the market.