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MediaTek bogged down in the quagmire, the domestic mobile phone has been Qualcomm won!

15 Apr 2017 - Qualcomm w

    Second of the world's largest chip maker MediaTek had to rely on low-cost Pinqiang market, but now it is in the same territory by opponents to erode. April 10th, sources said, Qualcomm in the first quarter of this year, the domestic smart phone chip market share exceeded 30%, while MediaTek's market share fell below 40%. Qualcomm and domestic chip manufacturers at the two ends of the attack, the share was swallowed MediaTek also suffered gross margin has been declining pressure. The "heavy" when will you play?
"Price war" under the market was eroded
Previous sharp pattern of mobile phone chip, is due to the downward attack on the high pass change.
    The party is being eroded in the low-end mobile phone chips dominate mediatek. One of the direct proof is MediaTek chip shipments in the first quarter of this year to reduce.

    Corporate MediaTek in April 10th at the briefing said, due to the impact of the first quarter fewer days and emerging market demand slowdown, forecast first quarter mobile phone and tablet chip shipments of approximately 105 million -1.15 million units, compared with 135 million in the previous quarter fell -1.45 million.

    This is clearly in the heat of the 2016 division of the two days with the fire. Zhu Shangzu, general manager of MediaTek in February 23rd, said in a foreign country, the domestic demand for domestic and export smart phone market demand since the outbreak of the lunar new year in 2016 all the way up, MediaTek all the way to chase the order gap. 2016 shipments of nearly 500 million standard.

    In addition to the needs of the mainland mobile phone manufacturers are not high, resulting in another important reason for the city of MediaTek fall is the high end of the competition in the mobile phone chip market. The world's largest chip manufacturers have not only introduced the intention to snatch the market share in the low-end of the 600 series Xiaolong chip, MediaTek also played a price war".

    High cost has been MediaTek label. According to the China Times reporter, MediaTek first chip design methods to reduce the threshold of the chip design, but now this model has become a common practice in the industry.

    Analysys terminal entrance analyst Zhao Ziming on the China Times reporter analysis said, after the high end of the phone in the middle of the configuration of the mobile phone performance is more general, the price is more expensive. But Qualcomm is now making adjustments in terms of price, compared to the previous generation of chips to lower the price.

    In addition, Qualcomm's high-end chips also appeared in the "price war" signs. It is said that Qualcomm Xiaolong 835 chips will be released in the upcoming millet on the first 6, which is Qualcomm's most powerful chip. The high pass to the price of millet is $30, equivalent to the highest hit forty percent off.

    Sun Yanbiao, President of the first mobile phone industry research institute, China Times reporter said that in order to block the opponent, so that engineers familiar with their own chips, to seize the market is the most direct price war. Qualcomm to push low-end chips, as long as willing to sacrifice profit point is easy.

    Hardcore allies switch to Qualcomm
In a number of adverse factors, MediaTek is facing a serious problem is that once the hardcore allies have switched to qualcomm.
In mobile phone sales gained rapid development of the domestic mobile phone manufacturers OPPO and vivo have a lot of cooperation with mediatek. Insiders told reporters, MediaTek's MT7675X terminal chip is widely used in the two companies, and now they are turning to Qualcomm Xiaolong 625 chip, "mainly in the terminal configuration models, the impact is relatively large."

    OPPO and vivo's choice of the United States issued a huge impact on chip shipments. In the IDC released in 2016 China's smart phone market shipments list, the two companies occupy the first and third place.

And let MediaTek have a sense of crisis is that the domestic mobile phone manufacturers     Meizu has also been Qualcomm won. Meizu almost all of the products are using MediaTek chips, can be regarded as the biggest in the Chinese market suffered a high nail". Qualcomm CEO Moran Krakow had in September last year reported that in China ten intelligent mobile phone manufacturers, Qualcomm has signed a licensing agreement with 9. The only sign is meizu.

    But the industry known as the annual MediaTek Meizu also signed a patent licensing agreement with Qualcomm at the end of 2016. It is said that the fastest may be seen at the end of 2017 with Qualcomm chip Meizu phone. Meizu is to pull the market, it is necessary to expand the market, which is a strategic issue." Sun Yanbiao told the China Times reporter said.
The background behind the new choice, after thousands of machine wars baptism, the upstream parts prices as well as the demand for profit driven domestic mobile phone manufacturers to high-end transformation.

    In fact, Moran cove in September last year had said that China on chip demand growth for mobile phone manufacturers in the end the company benefit. According to the latest data from the mobile phone industry research institute monitoring shows that the current average price of 2200 yuan in the domestic mobile phone market area.

    In this war similar to Intel and AMD, was firmly affixed to the high-end label Qualcomm has become a symbol of high-end mobile phone manufacturers.
Market tends to homogenization of competition, the use of Qualcomm chips become one of the selling points of the phone. Including Meizu, do not want to use Qualcomm chips, just do not want to pay so high price to use." Sun Yanbiao said.
Domestic mobile phone chip pattern 
It is worth noting that MediaTek in the low-end market is faced with Qualcomm and domestic chip manufacturers attack two ends

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