In a statement, Qualcomm Inc said, it is placing its 5G chips into smartphones that will sell for as little as $300 with new models of smartphones expected to reach consumers in the second half of this year.
Qualcomm is the biggest supplier of processors for smartphones and the modem chips that connect the phones to wireless data networks.
Currently, Qualcomm’s 5G capable chips are available in premium-priced smartphones including Samsung Electronics Co Ltd’s Galaxy devices.
Qualcomm has also been working to get the technology into cheaper devices.
The new chip, Snapdragon 690, will go into devices that it expects to retail at $300 to $500, said Qualcomm.
Smartphone makers, including HMD Global, the owner of the Nokia phone brand, China’s Lenovo Group Ltd’s Motorola and LG Electronics Inc, said Qualcomm.
For Qualcomm, the strategy makes sense since it will enable it to tap higher volumes.
Data from Counterpoint Research shows, smartphones which have a wholesales prices of $100 to $400, are somewhat lower than the prices consumers pay with these making up around 50% of the overall smartphone market in the first quarter of 2020.