Lianxin Technology Joins "Four-Core War"

Since last year, quad-core has become an absolute hotspot in the smart terminal market. After MediaTek released the first quad-core chip MT6589, yesterday, Lianxin Technology Co., Ltd. (hereinafter referred to as "Lianxin Technology") also announced the launch of the quad-core smart terminal SOC chip LC1813.

The chip products of both sides are oriented to the thousand yuan smart phone market. Industry insiders believe that this "four-core war" will intensify the price war.

Sun Yuwang, president of Lianxin Technology, said that in the current market, smart terminals using quad-core chips are generally positioned at the mid-to-high end. The LC1813 launched by Lianxin Technology this time will push the thousand yuan smart machine into the quad-core era. It is expected that the smart terminal based on the chip will be launched in the third quarter of this year.

In November last year, Lianxin Technology's parent company Datang Telecom announced that it would spend 90 million yuan on L1813 and 1812 smart phone chip solution projects, and 30 million yuan on the next-generation smart phone chip embedded software platform operating system development project.

According to data from iMedia Consulting, as of the third quarter of last year, smartphones with a price below 2,000 yuan occupied the absolute market space. Among them, there are not many low-cost smartphones with real quad-core. At present, the mainstream smartphones on the market are still mainly single-core and dual-core.

Earlier, in the low-cost quad-core smartphone market, the most concerned were the two quad-core processors MSM8225Q and MSM8625Q released by Qualcomm last September, and the MT6589 chip launched by MediaTek in December last year. The smart phones include Huawei G520, ZTE U950, Amoi N828, Coolpad 5930, Lenovo A820t, etc., all of which are aimed at markets below 1,000 yuan.

Many people believe that last year, the sharp rise in sales of MediaTek chips was largely due to the seizure of the thousand yuan smart phone market.

A person from a domestic mobile phone manufacturer told reporters that manufacturers participating in the quad-core smartphone war are emphasizing high specifications and high performance while also establishing an image of ultra-low prices. "But in fact, this is bloody competition. Even if the price is set at about 2,500 yuan, I am afraid that I will not make any money. The main purpose is to seize market share."

An industry source also told reporters that from single-core to dual-core, mobile phone performance can be increased by 20%, but from dual-core to quad-core, performance may only be improved by single digits, in fact, ordinary users simply do not feel it. Moreover, smartphones don't need quad-core configuration at all.

Ai Media Consulting Zhang Yi also told reporters that the quad-core mobile phone is purely "only earning money, not making money." For the quad-core mobile phone, the purchase cost is several hundred dollars, and the manufacturer has almost no profit. The dual-core is only about a year away, and for most users, the mobile phone has not yet been updated.

This price war is bound to impact the industrial pattern. If all four-core machines are sold for less than a thousand yuan, it is difficult for the dual-core machine to have a market without cutting prices.

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