Taiwanese chip design leader MediaTek has the opportunity to weaken rival Qualcomm's leadership in China's 4G smartphone market through a new eight-core processor that will be available in the first quarter of 2015; MediaTek said the company's MT6795 new 64 The "real eight-core" SoC has begun to provide samples and is expected to ship early next year.
According to Randy Abrams, an analyst at Credit Suisse in Taipei, MediaTek, which has a higher market share in China than Qualcomm, should be able to weaken Qualcomm's position in 4G LTE through the launch of MT6795: "The chip can One-of-a-kind prices offer performance like Samsung's Galaxy Notes; this is a local Chinese brand that wants to offer mobile phones that rival the Galaxy Notes or Apple iPhone at a retail price of $300 to $400."
MediaTek's new products will compete with Qualcomm and Intel chips in China's 4G market; Intel announced in September that it has already cooperated with China's chip design company Spreadtrum CommunicaTIons and RDA's behind-the-scenes major shareholder Ziguang Group. (Tsinghua Unigroup) signed a contract to invest $1.5 billion to acquire 20% of the group's shares.
Intel said it will cooperate with Spreadtrum to develop new products for Chinese customers, which are scheduled to be launched in the second half of 2015. According to local media reports in Taiwan, MediaTek’s chip shipments in China will surpass Qualcomm in 2015, and Abrams of Credit Suisse The message is not willing to comment. It only says: "Until April next year, MediaTek should be more competitive."
The report, which quoted the source, pointed out that MediaTek's MT6795 chip shipments are expected to reach 30 million in the first quarter of next year, giving the company a chance to win Qualcomm; Qualcomm currently has 68% of the global baseband chip market. Market share, according to market research firm Strategy AnalyTIcs, the market size in the second quarter of this year was $5.2 billion.
China's mobile phone processor market is estimated to reach 120 million units by the end of this year. Abrams estimates that Qualcomm's market share in this market is about 50%, followed by MediaTek, which accounts for about a quarter of the market; The share is about 5%, and the rest of the market is divided by Marvell, Intel and other vendors.
According to Abrams, MediaTek's MT6795 will target Chinese smartphone brands such as Xiaomi and Huawei, which compete directly with Qualcomm's 600-800 series Snapdragon processors launched in 2013. The MT6795 supports widescreen WQXGA resolution with a frequency speed of 2.2GHz.
MediaTek vs. Qualcomm
MediaTek is re-enacting the number of years ago to give the company a global leader in DVD player chips. The company successfully defeated rivals Sony and Samsung by cutting prices in the Chinese market; and MediaTek and Chinese brand manufacturers established The close relationship also continues to give the company the advantage of competing with Qualcomm.
Abrams believes that Qualcomm's local support in the Chinese market is still in a state of catching up with other rivals: “MediaTek's outstanding performance in providing Chinese manufacturers' reference designs will help customers to start mass production at low cost quickly.†Qualcomm is in the Chinese market. There are other obstacles as well - Qualcomm has accepted anti-monopoly investigations by the Chinese government since November 2013, delaying the negotiation of licensing fees between some unauthorised merchants and the company.
MediaTek also has its disadvantages. The company's MT6795 chip lacks the carrier aggregation (carrier aggregaTIon) function of Qualcomm chips; carrier aggregation of the 4G LTE Advanced specification enables multiple LTE carriers to be used together when high data transmission rates are required. Some Chinese smartphone brands may not consider carrier aggregation to be important, as this feature has not yet become popular among telecommunications service providers in China, and MediaTek will launch its first carrier aggregation product in the fourth quarter of 2015.
China's smart phone industry is experiencing “second wave†growth, with its main driving force coming from local consumers. In addition to the local market, Chinese smartphone brand players will also extend their sales reach to emerging markets. Abrams added that MediaTek's MT6795 is commissioned by TSMC.
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