Spreadtrum (SPRD +3.4%) rallies after SA Pro contributor Ashraf Eassa argues the Chinese...

|About: Spreadtrum Communications, ... (SPRD)|By:, SA News Editor

Spreadtrum (SPRD +3.4%) rallies after SA Pro contributor Ashraf Eassa argues the Chinese baseband chipmaker will benefit from surging low-end smartphone demand. Among his points: Spreadtrum's entry into the W-CDMA 3G baseband space greatly increases its addressable market; a mix shift towards chips with 3G/4G connectivity and more processing power will lead to higher ASPs; and sales of TD-SCDMA 3G chips (used in phones on China Mobile's 3G network) will grow rapidly even if some share is lost (Qualcomm and MediaTek are ramping their efforts here).