Shipments of 4G LTE smartphones are expected to increase by more than three fold in 2015, accounting for 50% of total global smartphones shipments, according to industry watchers.

However, driven by the handset supply chain in China and fierce competition among chipset suppliers including Qualcomm, MediaTek, Marvell Technology and Spreadtrum Communications, prices of LTE smartphones have been declining at a rate faster than expected, said the watchers.

Most LTE models rolled out by China-based vendors come with high hardware specifications but suggested retail prices of below CNY1,000 (US$163) and even as low as CNY499-599, noted the sources.

According to ABI Research, the number of commercial LTE networks will reach 350 by the year-end 2014. And shipments of LTE smartphones will top 680 million units in 2015 compared to 204 million units in 2014.

In 2015, production of LTE smartphones will continue to tread toward entry-level and mid-range models, with China-based vendors focusing on items tagged below US$100 and international brands eyeing those below US$200, added the watchers.