Comment by bluGill

> Or could we make a phone that runs 100x slower but is much cheaper? I

Probably not - a large part of the cost is equipment and R&D. It doesn't cost much more to build the most complex CPU vs a 6502 - there is only a tiny bit more silicon and chemicals. What is costly is the R&D behind the chip, and the R&D behind the machines that make the chips. If intel fired all their R&D engineers who were not focused on reducing manufacturing costs they could greatly reduce the price of their CPUs - until AMD released a next generation that is much better. (this is more or less what Henry Ford did with the model-T - he reduced costs every year until his competition adding features were enough better that he couldn't sell his cars.