Wait On Getting that Next-Gen Mobile Device, 4G Prices to Drop Dramatically in 2H '12

September 2, 2011 7:27 AM EDT
Thinking about springing for that 4G LTE mobile device to get blazing download speeds, fast web browsing, and smoother video display? Why not wait a year?

According to Digitimes Friday morning, the price on 4G LTE chips will see a dramatic decline in prices during the second half of 2012 [emphasis ours]. Many vendors will begin releasing single-mode chips at that time, and chip giant QUALCOMM (Nasdaq: QCOM) is expected to release the first multi-mode 4G LTE chip also in the first half of 2012, helping to pave the way for improvement.

Vendors of single-mode LTF FDD (frequency division duplexing) chips include France-based Sequans Communications (Nasdaq: SQNS), US-based Altair Engineering (Nasdaq: ALTI) and GCT Semiconductor, while those of TD (time division)-LTE chips include China-based HiSilicon Technologies, Innofidei and Spreadtrum Communications as well as MediaTek, Digitimes said sources indicated.

How much of a drop could be expected? Current prices of LTE interface cards are currently about $110 to $120, and that should be cut in half to a range of $50 to $60.

The news might be great for Apple (Nasdaq: AAPL) fans, which could see their iPhone 6 become a high-speed 4G device. Many phones from OEMs like HTC and Samsung currently employ the technology as carriers like AT&T (NYSE: T), Verizon (NYSE: VZ), and Sprint (NYSE: S) look to bolster their 4G offerings with coverage in more areas.


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