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Qualcomm is preparing to introduce a new product which will enable faster wireless service to basic low-priced smartphones.  The new product will ship in products in the second quarter of 2017 and will include a processor plus other hardware and software to increase the productivity of low-end phones.

The new phones are being made for the Indian, Latin Amerian and Southeast Asian markets. According to Qualcomm, the new chip will provide faster wireless connectivity and longer battery life among other features.

Qualcomm quoted a research saying that 2G, 3G supported phones in this market are typically priced at $15 to $50 while the high-end phones including a premium Qualcomm chip powered 4G supported phones are priced at $50 or above.

The expensive phone market boomed in the last decade but has come to a halt lately and since hence the company plans to produce products to increase its market share in the feature phones market.

According to a research, 56% of the phones imported in India were feature phones while the share of these phones in Indonesia and Vietnam was 62% and 49% respectively.

The company is targeting MediaTek’s market share by the introduction of this new chip. Mediatek had been producing products for feature phones but has now moved into the smartphone industry hurting Qualcomm’s market share.

It is reported that new phones will not be smartphones and will not be able to access the Play Store or App Store but will come with some pre-installed apps. These phones will be 4G supported and will compete against the lower end smartphones in these countries.


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156
120 shares, 156 points

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