Prices for 4G smartphone solutions have fallen below US$10 per unit, and will continue to drop reaching US$7-8 during the first half of 2015, according to industry sources.

As chip providers tend to offer lower quotes to snatch more orders, prices for 4G solutions will decline at a faster-than-expected rate in 2015, the sources suggested.

A price war in China's 4G smartphone chip market will be triggered by the local IC designers including Leadcore and Spreadtrum during 2015, with MediaTek and Marvell likely to follow suit, the sources indicated. The intensifying price competition may push smaller players out of the market.

Meanwhile, prices for terminal devices are also set to drop. Prices for mainstream 4G smartphones in China will fall to CNY1,000-1,500 (US$163-244) in 2015, with those for entry-level devices reaching as low as CNY700, the sources said.