Spreadtrum Introduces World's Lowest Cost Android Smartphone Platform, Reaffirms Q4 Guidance

Tallahassee, FL 12/8/11 (StreetBeat) -- Spreadtrum Communications, Inc. (NASDAQ: SPRD), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced the commercial availability of two low-cost Android smartphone platforms, the SC8805G for TD-SCDMA and the SC6810 for EDGE/WiFi. The two 40nm-based 600MHz solutions are based on a low power, cost efficient architecture that lower total phone cost to US$40-50, well below currently available smartphones and easily within reach of sub- $100 retail prices. This entry point can accelerate the overall footprint for smartphones in China and emerging markets by appealing to consumers who might otherwise choose a high end feature phone and by expanding smartphone distribution beyond operator channels to the open market.

"The SC8805G and SC6810 mark Spreadtrum's entry into the smartphone category," said Dr. Leo Li , Spreadtrum's president and chief executive officer. "We have combined our expertise in 40nm baseband platforms and highly integrated systems to deliver a low-cost solution in a new price segment that will make smartphone devices more accessible to consumers in China and emerging markets."

Spreadtrum also reaffirmed previously-released Q4 revenue guidance of US$188 million - US$194 million and gross margin guidance of approximately 41%. Dr. Li added, "Our smartphone solutions for TD and EDGE/WiFi are now commercially available and have started shipping. Demand in our 2G and 3G business lines remains healthy and we are on track to meet or exceed our Q4 revenue outlook."

The SC8805G and the SC6810 are based on Spreadtrum's turnkey platform, which consists of a hardware reference design and compliance-tested software suite that reduces the engineering requirement and accelerates time to market for handset manufacturers. The two solutions incorporate an ARM-9 600MHz processor, integrate power management and support Android 2.2, 2D graphics, camera support up to 5MP, MPEG4 decoder and encoder, an HVGA touch screen LCD display, as well as connectivity and broadcast functions including Wi-Fi, GPS, Bluetooth, FM and mobile TV.

The SC8805G targets China 's growing demand for low-cost smartphones, supporting China Mobile's TD-SCDMA standard. China Mobile estimates that next year more than 30 million TD-SCDMA smart phones will be sold to consumers, most in the low-cost segment. The SC6810 is designed for emerging markets, where 3G rollouts are still in development and EDGE/WiFi provides consumers interested in a smartphone experience with the best coverage available.

The two platforms have been designed into models by more than a dozen handset manufacturers, with the first models expected to ship this month. Designs with Spreadtrum's SC8805G have passed China Mobile's qualification testing, paving the way for product launch.

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