Fierce competition in the smartphone chipset and microprocessor market means prices of devices are likely to drop next year.
Smartcom, Qualcomm, Marvell and Broadcom are all competing in offering 32-bit quad core devices all hovering around the $8 to $9 mark. They are eyeing up Qualcomm’s Snapdragon 210 which costs $9 in bulk, according to suppliers that have talked to Digitimes.
It’s interesting that Intel doesn’t seem to be involved in this price war because it’s usually the first on the block to trigger price wars. That could indicate its tardiness in joining the smartphone fray.
There is growing demand for 64-bit eight core units which as part of the bill of materials cost around $15-$20. Four core CPUs cost around $12-$15.
All of this means a scrabble on behalf of the component suppliers which may well lead to cheaper overall bills of materials for smartphones.
