Chip orders for entry-level smartphone models are dropping

Chip orders for entry-level smartphone models are dropping
Industry sources say that orders for entry-level 4G and 3G phones are dropping like a lead balloon in emerging markets. As a result, chip orders for these devices are also crashing in the affected regions. Part of the reason for this is the aforementioned shrinking demand for these models. Additionally, the strengthening U.S. Dollar has forced prices of entry-level phones to rise in these markets.

According to these sources, companies producing cheaper handsets are looking to raise their average selling price which in turn would raise their margins. Analysts expect to see more declines in market share for these low-end 4G and 3G models next year. And the focus on more profitable phones could mean a shift in production to more mid-range and high-end models.

Orders for integrated circuits by customers in South America, Eastern Europe, Southeast Asia, Africa and the Middle East are on the decline. Other chip makers for entry level models agree that the order book for what's left of the fourth quarter is declining. Still, there are only three weeks left in the quarter and the year, which means that the decline in orders will probably not lead to a huge decline in entry-level phone production for the rest of 2016.

source: Digitimes

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5 Comments

1. USAUSAUSA unregistered

Qualcomm should ditched snap 200 and 400 series they're craps, and Chinese OEMs able to make entry level smartphone with snap800 series and equivalent

2. zenun12

Posts: 205; Member since: Oct 31, 2016

Then there's the problem of compatibility. There's a reason why even 2014 flagships cannot be updated to Nougat, it's a matter of compatibility. Let's say Xiaomi released an entry level smartphone with the Snapdragon 800 on it, it would have fluid performance, but it would have to stay on Android 6.0 or below. If you're good with that, I respect it.

4. sgodsell

Posts: 6712; Member since: Mar 16, 2013

Nougat has Vulkan graphics support, so only certain versions of Qualcomm's SoCs actually support Vulkan graphics API's. None of the SD 2xx or 4xx's have that support.

5. tomn1ce

Posts: 247; Member since: Mar 12, 2012

I don't think he meant the actual SD800 but the SD800 series like the SD808, SD810, SD820 and so on....

6. trojan_horse

Posts: 5868; Member since: May 06, 2016

I personally do not root for entry-level smartphones... Midrangers and flagships make my day!

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