Qualcomm has launched its new affordable, India-designed chipset, the Snapdragon 4s Gen 2, on Tuesday. This chipset is set to enable mobile device makers to sell 5G smartphones operating on a standalone (SA) network for Rs 8,300 or less, aiming to make 5G technology more accessible in the Indian market.
The San Diego-based company’s move is a strategic effort to compete directly with Taiwanese giant MediaTek, particularly in the sub-Rs 10,000 segment of the 5G chipset market in India. Chris Patrick, senior vice-president and general manager of mobile handsets at Qualcomm Technologies, Inc., highlighted the significance of this launch, stating, “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.”
Qualcomm has partnered with Chinese phone maker Xiaomi, and the first phones based on this new chipset are expected to hit the market by October this year. The company is also in discussions with other device makers to expand its reach.
Despite the excitement surrounding this launch, Qualcomm faces stiff competition from MediaTek, whose Dimensity range of chipsets already powers 5G phones priced between Rs 8,000 and Rs 10,000. MediaTek’s popular models in this price range 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 support both SA (Reliance Jio) and non-standalone (NSA) 5G networks (Bharti Airtel, which has announced plans to shift to NSA). Qualcomm’s new chipset, however, will initially work on NSA networks over 4G.
When asked if Qualcomm was a latecomer in the sub-Rs 10,000 5G chipset market, Patrick responded, “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.” He further emphasized that Qualcomm aims to target higher-end 4G phone users, encouraging them to upgrade to affordable 5G devices. Additionally, there are plans to cater to the feature phone market with even lower-priced offerings in the future.
Qualcomm also intends to introduce this chipset in the US, where many telecommunications companies are transitioning from NSA 5G to SA 5G, and then expand globally. According to the company, the new platform will make 5G accessible to over 2.8 billion consumers in select regions, offering peak download speeds of 1 gigabit per second — seven times faster than long-term evolution platforms in a similar price range.
Qualcomm faces a tough battle ahead. MediaTek’s share of the 5G chipset market in India increased from 22.8 percent in the first quarter (Q1) of 2023 to 29.2 percent in Q1 of 2024. MediaTek also held a 54 percent share of the overall smartphone chipset market in the second quarter of 2024, according to Counterpoint data.