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Qualcomm targets affordable 3G chips at mass market
By Zhu Shenshen |
December 9, 2011, Friday
|
Online Edition
Online Edition
QUALCOMM Inc today launched two chipsets for 3G phones costing less than 1,000 yuan (US$157) each to penetrate China's entry-level market, where millions of consumers are expected to migrate from 2G featured phones to 3G smart phones within years.
The US-based chip designer planned to kick off a new mobile phone platform in the first half of next year, with Chinese Internet giant partners like QQ's Tencent, Baidu and Alibaba, to help streamline the development of phone makers in the domestic market, the world's No. 1 mobile phone market.
Based on Qualcomm's new S4 chipsets and its upcoming Reference Design platform, firms can make 3G smartphones that cost less than US$150, industry officials said during a Qualcomm conference held in Shenzhen today.
"The demand for 3G smart phones is surging and the price of devices should drop rapidly to meet mass market requirements," said Cristiano Amon, Qualcomm's senior vice president.
Many Chinese users, especially in rural areas, still use 2G feature phones and they can't afford the high-end phones like iPhone 4, which starts at 4,999 yuan. Comparatively, 3G smartphones feature operating systems and supports faster Internet access for users.
China currently has 300 million smartphone users and the figure will hit 1.1 billion by 2015, half of them cost less than US$150, according to Gartner Inc, a US-based research firm.
The S4 products support new features like four-inch screens, high-definition videos and dual SIM cards, which is widely welcomed in China.
The quality of Qualcomm's products and affordability will bring fierce competition to other chip designers like MediaTek in entry-level markets and add more pressure on firms producing Shanzhai models 鈥 referring to copycat models with low cost and relatively low quality and guarantees 鈥 domestic hand makers SIM Technology and Yulong told Shanghai Daily today.
Qualcomm, which now has 80 partners in China, will expand in the domestic market through new partners and a research center in Shanghai.
Tencent, the country's No. 1 dotcom firm by market value, demonstrated a prototype model based on Qualcomm's chipsets and a new social and document sharing application from Qualcomm's QRD.
The Shenzhen-based Tencent, which owns the most popular social tool QQ, is expected to launch its own-brand phone soon, industry officials said.
The US-based chip designer planned to kick off a new mobile phone platform in the first half of next year, with Chinese Internet giant partners like QQ's Tencent, Baidu and Alibaba, to help streamline the development of phone makers in the domestic market, the world's No. 1 mobile phone market.
Based on Qualcomm's new S4 chipsets and its upcoming Reference Design platform, firms can make 3G smartphones that cost less than US$150, industry officials said during a Qualcomm conference held in Shenzhen today.
"The demand for 3G smart phones is surging and the price of devices should drop rapidly to meet mass market requirements," said Cristiano Amon, Qualcomm's senior vice president.
Many Chinese users, especially in rural areas, still use 2G feature phones and they can't afford the high-end phones like iPhone 4, which starts at 4,999 yuan. Comparatively, 3G smartphones feature operating systems and supports faster Internet access for users.
China currently has 300 million smartphone users and the figure will hit 1.1 billion by 2015, half of them cost less than US$150, according to Gartner Inc, a US-based research firm.
The S4 products support new features like four-inch screens, high-definition videos and dual SIM cards, which is widely welcomed in China.
The quality of Qualcomm's products and affordability will bring fierce competition to other chip designers like MediaTek in entry-level markets and add more pressure on firms producing Shanzhai models 鈥 referring to copycat models with low cost and relatively low quality and guarantees 鈥 domestic hand makers SIM Technology and Yulong told Shanghai Daily today.
Qualcomm, which now has 80 partners in China, will expand in the domestic market through new partners and a research center in Shanghai.
Tencent, the country's No. 1 dotcom firm by market value, demonstrated a prototype model based on Qualcomm's chipsets and a new social and document sharing application from Qualcomm's QRD.
The Shenzhen-based Tencent, which owns the most popular social tool QQ, is expected to launch its own-brand phone soon, industry officials said.
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