By Kim Yoo-chul
Qualcomm’s new chip for smartphones is expected to be a game changer in a global market currently dominated by Samsung Electronics and Apple.
The expectation came as Apple has strengthened its partnership with Qualcomm to use the U.S. chipmaker’s latest semiconductor to counterattack the Korean electronics giant. The move will also encourage Samsung to release more affordable models as it is seeking to continue its current lead over Apple, according to market analysts Wednesday.
Qualcomm stunned the global technology world last week by unveiling a chip that enables one platform to function on every existing network.
The biggest problem facing all handset manufacturers is the mobile radio frequency band fragmentation. But the headache has gone thanks to the breakthrough technology from the U.S.-based chip giant.
Qualcomm’s new chip the “RF360 Frond End Solution” eliminates radio frequency band fragmentation as the firm has combined all LTE platforms into it.
The development is widely viewed as a possible adverse factor for Samsung, because the Qualcomm chip provides Apple with a “second chance” to lift its smartphone business. It will help Apple roll out i-branded devices in all markets, simultaneously.
Right after the Qualcomm announcement, Samsung admitted it felt uncomfortable about Apple’s revival in the heated smartphone race.
“The Qualcomm chip will make Apple more powerful. We should introduce more devices that support Long-Term Evolution (LTE) ahead of Apple to maintain our bottom line and widen our current lead,” a senior Samsung executive told The Korea Times.
The executive said Samsung will try hard to offer price-competitive smartphones and tablets under a stronger partnership with Qualcomm, saying it was possible to offset the “Apple risk.”
“Because Apple doesn’t have its own manufacturing facilities, it is sticking to limited models unlike Samsung, which has a key edge in manufacturing. The Qualcomm breakthrough is posing a new threat to us,” the executive said.
This chip’s support for second-generation (2G), third-generation (3G), fourth-generation (4G) LTE and LTE Advanced means that it supports all 40 mobile radio bands currently in use.
In North America, major carriers are using 700-megahertz (MHz) and 2100 MHz as LTE networks, while 800 MHz, 1800 MHz, 2300 MHz and 2600 MHz are being used in Europe. In the Asia-Pacific region, there are two LTE-customized LTE bandwidth — 1800 MHz and 2100 MHz, while China is using TD-LTE tech as the nation’s sole LTE frequency.
“That’s why Apple has so far been releasing its new gadgets at different times. Now, Apple doesn’t have to worry about that,” said Kim Mi-song, an analyst at Hyundai Securities.
Qualcomm said smartphones that use the latest chip will be released in the latter half of the year. It refused to confirm whether the first model will be Apple’s next iPhone.
Samsung is still engaged in court battles with Apple, globally. In the last three months of 2012, Samsung and Apple together raised their combined global smartphone market share to 52 percent from 46.4 percent in the previous quarter. Samsung ended the year in the No. 1 position in both global smartphone sales and overall mobile phone sales.
Samsung’s resources and ability are an advantage that no other competitor can easily match. But the competition will intensify in 2013 as players such as Sony and Nokia as well as Apple are striving to raise sales.
Samsung targets to sell 510 million phones this year by shipping at least 100 million per quarter. Apple is preparing a major comeback with updated versions of the iPad and iPhone in the latter half of 2013, which may use the Qualcomm chip, said industry sources.