4G LTE Devices Will Be Significantly Cheaper Next Year

[dgstorm]

According to sources at DigiTimes, 4G LTE devices will most likely see a significant price reduction next year. Supposedly, several chipset vendors are about to begin mass production of a new (and cheaper to produce) single-mode LTE radio chip. Furthermore, Qualcomm iw working on a more advanced multi-mode LTE chip, that should debut in the first half of next year. The new parts are expected to be 50% cheaper to produce. Due to this evolution in the chips, the last half of 2012 should see a trickle-down effect, resulting in much cheaper LTE enabled devices. That probably means no more ridiculous $300 dollar on-contract debut prices for new phones, or at least until LTE-Advanced starts coming to phones...

Source: BGR and DigiTimes

 

[sonicxtacy02]

I doubt this personally. I understand the parts will be cheaper, but I still think Verizon wishes to adapt to the technology slowly as LTE is activated in more areas. No need to flood the market with cheap 4G devices yet.

 

[JayR_]

There is no way the price will drop as phones debut as long as people keep handing over ridiculous amounts of money for the latest and greatest. And i dont see that happening any time soon. Why sell something for 100 when you can get 3-400 out of it? Verizon isnt new to this rodeo. Take the new data prices as an example..

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[jayman350]

I don't think that we will be seeing cheaper LTE devices for a long time. Most carriers have started to go away from the subsidized phones (no more New Every 2, no more mail in rebates, etc.), which is why prices on new phones have gone up. I think that $300 top-tier phones are going to be more of the standard than the exception.

just because its cheaper for them to make the components does not mean that they will be passing their savings along to the customer, instead they just increase their profit margins a little more.

 

[Sweettooth]

I think it'd be a good idea for them if they did. As it stands now, the nice Android smartphones cost way too much when combined with the outrageous phone bill for the average user to want to buy. If they brought down the price of the higher end phones, as well as bringing out a number of $50+- devices, they'd inherit an even larger customer base.

 

[sb1831]

Just because there are going to be cheaper produced chips, definitely DOESN'T mean they should be used. We've seen the debacle that has been the Xoom with its LTE radio. People honestly can't expect to want high end products with new tech without a price increase. If someone doesn't want to spend $300 for an LTE phone they can wait for a price drop or get a 3G handset. Regardless I want quality, tested products with known compatibility in my phones.

The complaints of LTE cost phones are similar to that of people that want a $2-300 tablet. They want a tablet with mid range laptop specs, in a smaller package with quality materials, and the most up to date software but don't want to pay for it.

 

[nikecar]

Higher Prices=More Profit.

If folks buy them now, why not keep that extra profit?