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Qualcomm launched its new affordable, India-designed chipset, the Snapdragon 4s Gen 2, on Tuesday.
This chipset will enable mobile device makers to sell 5G smartphones operating on a standalone (SA) network for Rs 8,300 or less.
The launch is important because the San Diego-based company is in direct competition with Taiwanese giant MediaTek to dominate the 5G chipset market in India, particularly in the sub-Rs 10,000 segment.
Speaking on the importance of the launch, Chris Patrick, senior vice-president and general manager of mobile handsets at Qualcomm Technologies, Inc, said, “A few years ago, we took the audacious call to build a chipset for 5G SA networks to enable a $99 phone.
"We have incredible engineering talent in India, and we designed the chip to reach that cost structure.
"And we are talking to partners to enable selling a phone for Rs 8,300 and even lower.”
The company has partnered Chinese phone maker Xiaomi, and the first phones based on this chipset are expected to hit the market by October this year.
It is also in talks with other device makers.
However, Qualcomm faces stiff competition from MediaTek, whose Dimensity range of chipsets is already powering 5G phones priced from over Rs 8,000 and Rs 10,000.
According to MediaTek sources, these include the Lava Blaze 5G at Rs 8,999, the Itel P55 at Rs 8,958, and the Poco M6 64GB at Rs 8,249.
These devices work on both SA (Reliance Jio) and non-standalone (NSA) 5G networks (Bharti Airtel, which has announced plans to shift to NSA).
Qualcomms new chipset will work in a NSA network on 4G.
Asked whether Qualcomm was a latecomer in the sub-Rs 10,000 5G chipset market, Patrick said, “We don’t think so.
"This device will reach a level that has not been explored.
"Of course, everyone is looking at ways to reduce the entry cost of 5G phones, and that is good for the overall market.”
Patrick added that Qualcomm aims to target higher-end 4G phone users, whose devices range between $70 and over $100, encouraging them to upgrade to affordable 5G phones.
“There is, of course, a market for feature phone users who would require a lower-priced offering, and that will be our next step,” Patrick added.
Qualcomm also plans to launch the chipset in the US, where many telecommunications companies are transitioning from NSA 5G (where the core is still 4G) to SA 5G, and then globally.
According to the US-based company, the new platform will make 5G accessible to over 2.8 billion consumers in select regions, offering 1 gigabit per second peak download speeds — seven times faster than long-term evolution platforms in a similar price range.
Clearly, Qualcomm has a tough battle ahead.
According to Omdia, MediaTek’s share of the 5G chipset market in India increased from 22.8 per cent in the first quarter (Q1) of the calendar year (CY) 2023 to 29.2 per cent in Q1 of CY 2024.
MediaTek already held a 54 per cent share of the overall smartphone chipset market in the second quarter of CY 2024, according to Counterpoint data.
The 5G Chipset showdown
Qualcomm’s 5G chipset: The game changer
Enables 5G standalone (SA) phones for Rs 8,300 and below
Designed in India, with plans to launch in the US and globally
Future-proofing the market
Open to creating chips for upgrading 2G feature phones to 5G at even lower prices
MediaTek’s stronghold
Dimensity chipsets already powering 5G phones starting at Rs 8,249
Compatible with both SA and non-SA networks
Market dominance
MediaTek holds 54% of the overall smartphone chipset market
Controls 29% of the 5G chipset market in India
