As China Mobile, China Telecom and China United Network Communications will procure large volumes of inexpensive smartphones equipped with 1GHz processors, there is increasing competition among handset chip vendors Qualcomm, Taiwan-based MedaTek, Broadcom and China-based Spreadtrum Communications, according to Taiwan-based handset makers.

While the four vendors and others have offered 1GHz chip solutions supporting 3.5G, Android, multimedia and dual-mode functions, the Qualcomm-developed MSM7227A solution has gained the upper hand, followed by MediaTek-developed MT6575, the sources indicated. In contrast, Spreadtrum and Broadcom are competing for orders by virtue of differentiation in function, with the former focusing on TD-SCDMA, a China-developed 3G standard, solutions and the latter's solutions featuring integration of NFC (near field communication), Bluetooth 4.0, 802.11n and GNSS (global navigation satellite system) functions, the sources pointed out.

In the China market, Nokia, Samsung Electronics, Motorola Mobility, Sony, HTC as well as China-based vendors Huawei Device, ZTE, Lenovo, TCL, Haier and Hisense will launch inexpensive entry-level smartphones equipped with 1GHz processor in 2012, the sources noted. China-based vendors are expected to release ODM or EMS orders to Taiwan-based makers, the sources indicated.