According to a Chinese site, Google may be working with chip manufacturer MediaTek to create a $100 smartphone.

Credits: 9 to 5 Google

Some are speculating that this low price point is meant as a way to hamper the sales of Apple’s iPhone 6 which is rumored to be increasing in price. The truth of the matter though is that Apple has never been in the budget market, and they won’t feel any pressure to make their products cheaper.

Microsoft on the other hand could lose a lot of sales if consumers are driven to Google’s cheaper products that are just as good as Windows phones.

Another take on Google’s budget phone is that it may try to create affordable phones so that it can bundled with Google Glass. This would certainly offer an experience other phone companies can’t.

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