Qualcomm, Xiaomi to launch 5G smartphone under $99, to support Jio’s SA network

Qualcomm is working with original equipment makers (OEMs) to develop and launch the phone.

US-based chipset maker Qualcomm has launched its most affordable 5G chipset for the Indian market, enabling handset companies to launch smartphones under Rs 8,200 or $99. It has tied up with Reliance Jio and Xiaomi.

The Chinese handset maker will be the first company to introduce the first 5G smartphone using this chipset. The phone will be available by the end of the year.

The latest chip, Snapdragon 4s Gen 2, could encourage 2G users to switch to a smartphone-enabled 5G environment in India. The newest chipset could help Qualcomm better compete in the declining entry-level segment, where it has been playing catch-up with rival MediaTek.

Qualcomm has focused more on serving the premium segment in the last few years, riding the premiumisation wave in the smartphone market in India and globally.

The entry-level smartphone market (phones under $100) has been shrinking as more users are opting for more expensive and high-end options. According to research firm IDC, the market for entry-level smartphones declined by 14 percent compared to the previous year, accounting for only 15 percent of total smartphone sales in the March quarter, down from 20 percent a year ago.

Moneycontrol first reported the development on February 27.

Qualcomm is working with original equipment makers (OEMs) to develop and launch the phone. By next year, India could soon see a slew of 5G smartphones priced well around Rs 10,000, with chipset maker Qualcomm rolling out an entry-tier 5G chipset to increase 5G adoption in emerging markets like India.

Savi Soin, president of Qualcomm India, said Qualcomm is discussing with other handset makers the launch of smartphones for under Rs 8,200 or $99.

The executive said the latest chipset has been designed and developed in India. The chipset will also be made available to Latin America and Central Asia.

Sources said that HMD Global and Motorola are assessing their options before launching devices powered by the chipset.

Soin said that the gigabit 5G smartphone device will support the 5G standalone architecture, which Jio is currently offering.

The gigabit 5G smartphone will be powered by a dedicated low-cost customised processor using SA-2Rx capability, capable of gigabit speeds on a 5G network.

Soin said the company aims to provide affordable 5G solutions to bring seamless connectivity to the remotest areas.

"5G can bridge the digital divide, empowering Indians with crucial tools and services in education, government services, healthcare, and payments more reliably and securely, and drive India's Made in India agenda. Snapdragon 4S Gen 2 is a key step in strengthening India's 5G landscape and democratizing connectivity," he said.

Qualcomm said the latest chipset will help reduce manufacturing costs by providing reference designs and collaborating closely with brands through its customer engineering teams. The chipset, it said, enables smartphone brands to bring down the cost of the printed circuit board (PCB), a crucial component in a mobile phone, along with other components.

"We have gone through every aspect of the BOM (Bill of Materials) and reduced the cost of not just our chipset, which itself is a collection of multiple components, but also the components that go along with the chipset and things like the PCB cost," said Deepu John, senior director, product management, Qualcomm.

Srini Maddali, senior vice president of engineering at Qualcomm, said the cost addition happens as brands work to integrate custom software, modem interfaces and more. "We hope that our design template of the new chip will help reduce the overall manufacturing cost for brands as well, but it’s difficult to put a number on how big an impact this will be due to the wide range of ways in which companies make their phones," he said

Sunil Dutt, president of Reliance Jio's devices division, said Jio and Qualcomm's partnership with handset OEMs will ensure connectivity for everyone. He said the partnership will transform the Indian telecom market. “5G for all is becoming a reality.”

The chipmaker also unveiled the Snapdragon X Series compute lineup for the Indian market after the global launch of the Snapdragon X Elite and Snapdragon X Plus with Microsoft Copilot+. It has collaborated with major PC OEMs like Asus, Acer, Dell, HP and Lenovo to launch AI PCs with its Snapdragon X Elite and Snapdragon X Plus processors.

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