Smartphone solution vendors including Qualcomm, MediaTek and Marvell Technology are expected to ramp up shipments of 4G chips in the third quarter of 2014 at the expense of their gross margins, according to industry sources.

Qualcomm and Marvel have seen their gross margins begin to slide in the second quarter, with Qualcomm revising its gross margin downward to 47%, said the sources.

Meanwhile, MediaTek may see its gross margin move up in the second quarter but it noted it will face pressure to ramp up gross margin in the third quarter as prices of 4G chips are likely to press down on rising shipment volumes.

Additionally, since Qualcomm has noted that it will lower prices of its 4G chips to further promote sales, MediaTek and Marvell will be forced to follow suit shortly.

Price competition among Qualcomm, MediaTek and Marvell may push down 4G chip prices by 20% in early third quarter, the sources commented.