China-based white-box handset vendors, which have been forced to stay in the 3G sector amid rising popularity of 4G LTE smartphones, reportedly are using inferior parts and components for the production of 3G models in order to cope with ever-declining handset selling prices, according to sources in Taiwan's handset supply chain.

　　The focus of international brands as well as first-tier China-based handset vendors in rolling-out 4G LTE smartphones has offered an opportunity for white-box handset suppliers to continue to strive in the 3G sector, the sources noted.

　　However, white-box handset vendors will see price competition from the 4G segment continue to intensify as some major players such as Sony Mobile Communications, Samsung Electronics, LG Electronics and HTC have starting rolling out 4G LTE models priced below US$300 for the entry-level to mid-range segment.

　　Nevertheless, the popularity of the 4G models is likely to drive the price of mainstream entry-level to mid-range LTE smartphones down to below US$200 within a short period of time, which will add more pressure on sales of 3G models, added the sources.

　　Some white-box handset makers have begun to use inferior parts and components for 3G smartphone production and have also cut back their commitments on maintenance in order to maintain their profits, revealed the sources.