3G, smartphones lead upscale releases

	The 9762D-Android model from Reach (Xiamen) supports CDMA 1x, CDMA2000 and CDMA 1xEV-DO. It has a 3.6in WVGA touchscreen TFT.

Makers are stepping up product development with high-end and features-rich models.

Riding the popularity of 3G and smartphones in the global market, China suppliers of CDMA handsets are redirecting development and production initiatives from low-end to upscale types.

Most manufacturers are shifting R&D efforts from 2/2.5G standards or dual-mode GSM/CDMA models to 1xEV-DO Rev 0 and Rev A-compliant 3G units.

A growing number of players, including Shenzhen Ephone Communication Technology Co. Ltd and Linktop Technology Co. Ltd, are now introducing 3G and smartphones. They specialized previously in entry-level and midrange handsets. The former turns out about 500,000 CDMA variants monthly, which account for 90 percent of its total revenue.

Linktop, which has a monthly output of 50,000 units, has released a smartphone using Qualcomm’s baseband IC and Marvell’s controller chip. It is currently working on EV-DO types.

A recent addition to the growing supplier base is a few independent design houses, which have begun developing models in the high-end range where they can maximize their technical expertise.

Most enterprises also offer partially finished products or motherboards to terminal makers, which then add other parts and components, and conduct final assembly.

Reach Tech (Xiamen) Co. Ltd belongs to this tier, emphasizing mainly 3G EV-DO and smartphones. It also provides solutions to major China vendors that market CDMA phones under their own brands.

Qigi Future Technology Co. Ltd, a subsidiary of TechFaith, which is among the top design houses in China, has also entered the line. Its catalog includes CDMA, GSM and 3G handsets.

The key export destination is the Asia-Pacific region, comprising Vietnam, Indonesia, Pakistan and Thailand. CDMA Development Group estimates that the area currently accounts for 55 percent of global CDMA subscribers, and is growing 22 percent annually.

Low-end CDMA phones from China range from $22 to $35. These typically operate on 800MHz or 1,900MHz and have a 1.5 to 1.8in 65,000-color TFT screen with 128x160-pixel resolution. Most models do not feature a camera but have up to 32 polyphonic ring tones, games and an alarm clock. An FM radio is optional.

Midrange products, listing between $40 and $80, have 1.8 to 2.4in, 128x160 or 240x320-pixel TFT screens and 300,000-pixel to 2MP cameras.

Bluetooth, MP3/MPEG-4 playback, USB interface, a built-in FM radio and a memory card slot are standard. Some units come with a touchscreen, handwriting recognition, analog TV,

G-sensor and dual-mode/standby support for GSM and CDMA.

High-end versions are quoted from $81 to $110. These usually have 2.4 to 3.2in touchscreen QVGA TFTs with 260,000 colors and 1.3 to 3MP cameras.

On top of functions similarly found in midrange models, GPRS may also be enabled. Some provide dual EV-DO and GSM modes.

Smartphone variants have GPS, Wi-Fi and data management applications. Such configurations go for $130 to $350.

Windows Mobile OS is used in about 60 percent of current smartphones. More design houses and large manufacturers, however, are adopting Google’s Android.

This presents a cost alternative to the former, for which Microsoft charges $15 to $20 per model.

New and upcoming smartphones emphasize larger and high-definition LCDs suitable for enhanced mobile Internet access. Qigi’s recent releases, for instance, pack 3.5in and larger displays, even for the slimmest version. Its V3000 EV-DO model features a 5in screen, 512MB RAM and 512MB ROM.

Some makers are also pursuing dual-mode CDMA EV-DO/GSM units designed to draw GSM users into upgrading to 3G EV-DO without discarding their old SIM cards completely.

Most suppliers source ICs from Qualcomm, although some also utilize Via chips for low-end and midrange variants.

Dual-mode GSM/CDMA versions generally apply MTK6225, MTK6302 and QCS6010/CBP 5 solutions.

Many manufacturers prefer using total solutions for their CDMA smartphones such as Qualcomm’s MSM7000 series. Others adopt separate processors and baseband chips to save on costs.

Supplementing their shipments to overseas markets, many players are also building up their domestic client base, which is estimated to grow to 80 million subscribers this year.

The domestic boost is backed by homegrown CDMA operators that aim to broaden the standard’s adoption among China consumers. China Telecom, for example, pioneered the CDMA2000 Handset Design and Development Industry Alliance in March 2010.

Members include Qualcomm, Samsung, Via, MediaTek, Microsoft, Foxconn, BYD, Inventec, Longcheer, Simcom, Huawei, ZTE, Tianyu, LG, Yulong, Hisense, Haier, Lenovo, Motorola, Nokia, Dopod, Datang and Sharp.

China Telecom has also established the GSM/CDMA Dual-Mode Terminal Industry Alliance, a similar group targeting to attract more GSM users to shift to CDMA. It has partnered with Samsung, LG, Yulong, ZTE, Hisense, Daxian, CECT,

UT-Starcom, Konka, Albert Henderson and Fujian Netcom.

By involving upstream players, international phone suppliers, handset designers, EMS providers and domestic manufacturers, the associations aspire to expand CDMA advancement initiatives worldwide.