Qualcomm Inc is planning to put 5G technology into chips for smartphones which will be sold for $300 and will hit the market in the second half of this year.
San Diego-based Qualcomm is the biggest supplier of processors for smartphones and the modem chips that connect the phones to wireless data networks.
The company’s chips featuring 5G cellular telecommunications technology are currently in many premium-priced smartphones such as Samsung Electronics Co Ltd’s Galaxy devices.
But Qualcomm has also been working to get the technology into cheaper devices. The new chip, called the Snapdragon 690, will go into devices that it expects to retail at $300 to $500, Qualcomm said.
Phone makers such as HMD Global, the owner of the Nokia phone brand, LG Electronics Inc and Lenovo Group Ltd’s Motorola plan to use the chips, Qualcomm said.
The push into lower price points means higher volumes for Qualcomm. According to data from Counterpoint Research, smartphones with wholesales prices of $100 to $400 made up about 50% of the overall smartphone market in the first quarter of 2020.