Introduction
In a strategic move to capture a larger share of the 5G chipset market, Qualcomm has launched its new affordable, India-designed Snapdragon 4s Gen 2 chipset. This initiative aims to challenge Taiwanese giant MediaTek’s dominance, particularly in the sub-Rs 10,000 segment of the Indian market.
The new chipset is set to enable mobile device makers to sell 5G smartphones operating on a standalone (SA) network for Rs 8,300 or less.
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A Game-Changer in Affordable 5G Technology
Qualcomm’s new Snapdragon 4s Gen 2 chipset will revolutionize the affordable 5G smartphone segment. Chris Patrick, senior vice president and general manager of mobile handsets at Qualcomm Technologies, emphasized the significance of this launch.
Qualcomm’s Snapdragon 4s Gen 2 is designed to bring 5G connectivity to the budget smartphone segment. Here’s a breakdown of its key features:
- 5G Connectivity: Offers 1 Gbps download speeds, a significant leap over previous generations in this price range.
- Processor: Built on a 4nm process, providing a balance of performance and power efficiency. Features a combination of performance and efficiency cores.
- Camera: Supports up to 84MP main camera sensors, promising improved image quality.
- Display: Capable of driving Full HD+ displays with refresh rates up to 90Hz for smoother visuals.
- Battery: Optimized for longer battery life through efficient power management.
- Other features: Includes support for faster UFS 3.1 storage, Qualcomm aptX audio for better wireless sound quality, and dual-band NavIC for enhanced location accuracy.
“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. We are talking to partners to enable selling a phone for Rs 8,300 and even lower,”
~Qualcomm SVP
The company has partnered with Chinese phone maker Xiaomi, with the first phones based on this chipset expected to hit the market by October this year. Additionally, Qualcomm is in discussions with other device makers to expand the reach of this new chipset.
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Competition with MediaTek
Qualcomm faces stiff competition from MediaTek, whose Dimensity range of chipsets is already powering 5G phones priced from Rs 8,000 to Rs 10,000.
MediaTek’s offerings 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 are compatible with both SA (Reliance Jio) and non-standalone (NSA) 5G networks (Bharti Airtel, which has announced plans to shift to NSA).
Qualcomm’s new chipset will work on NSA networks using 4G. When asked whether Qualcomm was a latecomer in the sub-Rs 10,000 5G chipset market, Patrick responded confidently,
“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.”
Future-Proofing the Market
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.
The company plans to launch the chipset in the US, where many telecommunications companies are moving from NSA 5G, which still uses a 4G core, to SA 5G. After the US launch, the chipset will be introduced globally. Qualcomm states that the new platform will provide 5G access to over 2.8 billion consumers in select regions. It offers peak download speeds of 1 gigabit per second, which is seven times faster than similarly priced long-term evolution platforms.
MediaTek’s Market Dominance
MediaTek’s share of the 5G chipset market in India increased from 22.8% in the first quarter (Q1) of the calendar year (CY) 2023 to 29.2% in Q1 of CY 2024, according to Omdia.
MediaTek already held a 54% share of the overall smartphone chipset market in the second quarter of CY 2024, according to Counterpoint data.
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Impact on the Indian Smartphone Market
The launch of the Snapdragon 4s Gen 2 is a strategic move by Qualcomm to strengthen its position in India’s rapidly growing smartphone market. By offering 5G capabilities at a more affordable price point, the chipmaker aims to:
- Expand the 5G user base: Make high-speed internet accessible to a wider audience.
- Boost smartphone sales: Encourage manufacturers to launch more affordable 5G devices.
- Compete with MediaTek: Challenge MediaTek’s dominance in the budget segment.
While the initial focus is on India, the global implications of this launch are also significant. It signals Qualcomm’s commitment to making 5G technology more widely available across different price tiers.
