Qualcomm on Tuesday unveiled new Snapdragon chips designed to give entry-level phones more performance and 5G connectivity.
The Snapdragon 4s Gen 2 platform promises all-day battery life, improved camera capabilities, and peak 5G speeds of 1Gbps (7x faster than LTE platforms at the same price point).
Qualcomm said the mobile platform will enable 5G for 2.8 billion smartphone users in certain regions around the world, adding that it will be initially adopted by major OEMs including Xiaomi, with the first units available by the end of the year.
“The Snapdragon 4s Gen 2 mobile platform is a giant leap forward in making 5G technology more accessible, allowing more people to navigate the world at 5G speeds,” Chris Patrick, senior vice president and general manager of Mobile Devices at Qualcomm, said in a statement.
“They’re really pioneering the $99 smartphone class with some major improvements to what is typically the bottom end of the performance spectrum,” declared Rob Enderle, president and principal analyst at the Enderle Group, a Bend, Oregon, consulting services firm.
“This class of entry-level phone appears to be seeing the most significant growth in recent years,” he told TechNewsWorld.
Rewarding all stakeholders
Enderle continued that the chip will benefit consumers, carriers and phone manufacturers: “Consumers will enjoy improved performance and battery life (approximately 1.5 hours more video streaming and 30 minutes more talk time compared to the previous generation), significantly improved picture quality (images and videos look better on large TV screens) and significantly improved gaming performance,” he said.
“Improved modem capabilities give carriers a stronger argument for getting users to upgrade to 5G,” he added, “and phone makers a stronger argument for getting users to upgrade their phones to the latest technology.”
Mobile phone makers also benefit from the platform’s versatility and cost-effectiveness, added Mark N. Bena, president and principal analyst at SmartTech Research in Las Vegas. “This will enable them to design a wide range of devices to address different market segments without sacrificing quality,” he told TechNewsWorld.
“Telecom operators will also benefit from enhanced 5G capabilities that will enable more reliable and faster network performance, ultimately improving user experience and spurring the adoption of next-generation mobile services,” he added.
Regional Charm
Geography will play a key role in the distribution of devices using the chip, technology experts say.
“The 4 Series is Qualcomm’s entry-level mobile phone chipset, targeted at economies and regions where LTE is still prevalent,” explained Ross Rubin, principal analyst at Reticle Research, a consumer technology consulting firm in New York City.
“The aim of this Snapdragon 4s Gen 2 is to entice users who are on LTE to move to 5G,” he told TechNewsWorld. “Part of that will depend on what carrier pricing is for 5G service versus 4G service in these regions.”
“This will definitely be a chipset suitable for markets like China and India,” added John Strand of Danish telecoms consultancy Strand Consult.
“This is a very interesting chipset for mobile phone manufacturers supplying to the Indian and Chinese markets. Those are the markets where this chipset will be shipped in the largest numbers. That’s their target demographic,” he told TechNewsWorld.
Phil Solis, research director for connectivity and smartphone semiconductors at global technology market research firm IDC, explained that the increased adoption of entry-level 5G system-on-chip (SoC) chips will lead to more lower-priced 5G smartphones. “This will disproportionately impact regions with lower average selling prices for smartphones, such as Eastern Europe, India and Latin America,” he told TechNewsWorld.
“India is an important market with its ongoing transition to 5G, large population and growing middle class,” he said.
Promoting the spread of 5G
Solis noted that only 70% of smartphones shipped this year will support 5G, and “Qualcomm’s platform will help accelerate that growth over the next few years,” he said.
According to IDC, global 5G penetration is expected to exceed 67% by the end of 2024 and reach 81% by the end of 2028. Currently, 5G penetration in developed regions is 88% (90% in China), compared to 41% in developing regions.
Vena predicted that the impact of the new Snapdragon platform should be enormous: “It should significantly accelerate 5G adoption by making advanced 5G connectivity available to a wider range of consumers.”
“By integrating powerful 5G capabilities into mid-range and budget devices, Qualcomm is enabling a wider range of users to experience the benefits of faster internet speeds, lower latency and improved network reliability,” he continued.
“The democratization of 5G technology will not only improve user experience across a range of applications, from streaming and gaming to telemedicine and remote work, but also motivate operators to expand their 5G infrastructure,” Vena said. “As a result, the Snapdragon 4s Gen 2 will act as a catalyst for the widespread deployment of 5G, driving market penetration and spurring innovation across the mobile ecosystem.”
Revenue sharing protection
Rubin noted that Qualcomm isn’t the only company making 5G chips for the lower end of the market.
“There are other options for cheaper 5G chips, primarily from MediaTek,” he said. Historically, the company has been the dominant provider in price-sensitive markets. It doesn’t necessarily make the cheapest phones, but it does provide chips for many mainstream devices outside the U.S.”
The real significance of this SoC, Solis added, is that it’s part of Qualcomm’s strategy to better compete with MediaTek in lower-priced phones. “MediaTek is starting to gain share in premium and flagship phones,” he explained. “Most of its smartphone SoC revenue comes from high-end SoCs.”
“India is a key country for SoC vendors to focus on,” he continued. “By focusing on India’s growing 5G SoC market, Qualcomm is positioning itself to serve a market with a large population and a growing middle class that is shifting towards premium smartphone purchases.”
“Qualcomm is now gearing up to gain a larger share of shipments in the region, which will translate into increased revenue share in the long term,” he said.
Solis noted that in 2023, MediaTek will account for 29% of mobile phone SoC shipments, compared with Qualcomm’s 20%. However, in terms of revenue, Qualcomm will capture 35% and MediaTek 22%.
“MediaTek is the leader in global mobile phone SoC shipments, but Qualcomm is the leader in mobile phone SoC revenue,” he explained. “MediaTek is looking to gain revenue share, and Qualcomm is looking to defend it.”
Competitive considerations aside, for Qualcomm supporters, the arrival of the Snapdragon 4s Gen 2 marks the end of a long wait. “It’s been a long wait for Qualcomm,” said Anshel Saag, senior analyst for mobility, 5G and XR at Moore Insights & Strategy, an Austin, Texas-based technology analyst and advisory firm.
“They’ve been promising for a long time that 5G will eventually reach the affordable range,” he continued. “It’s great to see 5G capabilities trickling down from the high end, and we believe that with so many affordable devices on the market over the next few years, there will be increased appetite from operators to roll out standalone 5G.”
