China Unicom and handset vendor Xiaolijiao have jointly launched an ultra-low priced 4G smartphone, the Honglajiao, in China, which is likely to trigger a new round of price-cut competition for 4G models in the market, according to sources in Taiwan's handset supply chain.
The Honglajiao, which is built on Marvell's Armada mobile PXA1908 platform featuring a 5-inch HD display and supporting 4G/TD-LTE, FDD-LTE, 3G/WCDMA and 2G/GSM technologies, is available at only CNY399 (US$64).
Prices of 4G models currently range from CNY799 to CNY999, but some first-tier vendors have begun offering models priced at CNY599, the sources noted.
While first-tier vendors including Xiaomi Technology, Huawei, Lenovo and Oppo may not step into the sub-CNY399 segment, other second- and third-tier players have no choice but to follow Xiaolajiao's move, the sources commented.
Furthermore, China Unicom and China Telecom are expected to increase efforts to promote low-priced TD-LTE/LTE FDD dual-mode 4G models after being granted LTE FDD operating licenses in March, said the sources.
