The global 2.5G handset solution market is likely see price competition after China-based IC vendor Spreadtrum Communications releases its new 2.5G solution, the SC6610, later in May, which apparently will take on the MT6252 solution offered by MediaTek, according to industry watchers.
A third vendor that will join the competition is MStar Semiconductor, which has stated that shipments of its 8252-series 2.5G solutions will continued to grow by a sequential 50% in the second quarter as they did in the first.
To play down the effect of MStar's statement, MediaTek has also continued to trumpet that it has received more and more orders for its MT6252 chips from branded as well as white-box handset vendors in China and its shipments will expand substantially in June.
While MediaTek and Spreadtrum currently have the advantage of holding 70% and 30% shares, respectively, of the 2.5 handset solution market in China, the two companies are likely to be forced to adopt aggressive pricing to maintain their market shares should sales of 8252 solutions from MStar prove to be successful, the sources commented.