Qualcomm may reduce the price of its mid-range and entry-level Snapdragon mobile processors, including the 400 and 600 series, in 2023, according to industry sources.

The sources said the short-term purpose of the price cut is most likely to reduce inventory, however, industry insiders are concerned that it could be the start of a price war for mid-range and entry-level cell phone SoCs, according to Taiwanese media outlet Electronic Times.

"Whether Qualcomm's move will trigger a price war is unclear. In any case, slowing demand in mid-range and entry-level handset markets and general price sensitivity increase the likelihood that future handset brands will push Qualcomm and MediaTek to cut prices." The source said.

Market research firm Strategy Analytics released a report showing that global smartphone shipments will decline 10 percent year-over-year in 2022. The downward trajectory will continue through 2023, but the annual growth rate will improve to -5%. Global smartphone shipments will reach their lowest level since 2014. This is a very tough time for the industry as a whole.

In addition, Bank of America also conservatively look at the smartphone industry, the agency believes that the industry chain is undergoing end-product destocking, smartphone inventory days will climb to the top in Q1 to Q2 next year, reaching 3.2 months, and may continue to Q3, maintaining a level of 3.1 months, the relevant supply chain will be difficult to get rid of operational pressure in the first half of next year.

source：aijiwei