MediaTek Rivalry With Qualcomm Intensifies With Its New Chipset For Cheap Phones

Earlier this month, the Taiwanese firm founded in 1997 MediaTek accounted the development of a chipset series that can give a “greater number of consumers access to high performance devices without a premium price tag.” The firm was referring to its Helio A22 chipsets which are loaded with camera features, power efficiency and enhanced in artificial intelligence features.

This chip can help the company to stage a comeback after a lackluster 2017 because those budget consumers would love to pay less for top performance. MediaTek supplies chips for about 1.5 billion devices every year but would require more clients and orders to cope with the combination of Qualcomm and Apple, according to analysts.

“MediaTek’s Helio A22 is a prime example of the continued focus that chipmakers have on reducing costs while introducing advanced features into lower price tiers,” says Scott Peterson, smartphone analyst with Gap Intelligence in the U.S. “MediaTek’s efforts will help OEMs produce compelling smartphones outside of the flagship realm.”

According to the latest financial statement of MediaTek available online, compared to earnings of NT$6.6 billion in the first quarter of 2017m the company notched up earnings of just NT$2.7 billion in the same period in 2018.

There is a clear rivalry in the segment. According to Sravan Kundojjala, associate director for smartphone component technology with the market research firm Strategy Analytics, Bluetooth 5.0, USB 3.1, advanced video recording and artificial intelligence can be accommodated in the chips from Qualcomm. Kundojjala says that this San Diego-based firm is also adept at bringing in new products fast into the market.

Taipei-based Market Intelligence & Consulting Institute senior industry analyst Eddie Han says that “smart” apps and facial recognition is supported by smartphones that w\are powered by Helio A22 chip and can be used in phones priced as low as $100.

In 2017, 20 per cent of the global market was taken by smartphones powered by MediaTek chips. Compared to that the market share for Qualcomm was 34 per cent but has the largest share for Apple phones, says data provided by market research firm Canalys.

“Qualcomm has been very successful in this market and even gained market share at the expense of MediaTek in 2017,” Kundojjala says.

But according to Kundojjala, last year, because MediaTek could not “advance its LTE product roadmap,” it had to struggle. He adds that competitively priced LTE chips are specifically popular in China which is a very important market for MediaTek as there are lot of people there who use cheaper phones.

Sachin Garg, associate director for electronics and semiconductors with Markets and Markets, says that the Chinese smartphone maker Xiaomi known for its cheaper handsets is eyeing to dominate the Indian market with its focus on handsets that are priced below $200. This is a market that MediaTek should take note of.

Canalys research analyst Mo Jia says that because Qualcomm chips outsold MediaTek’s X seriesm MediaTek had “lost the battle” last year for the premium market.

Gap Intelligence data analyst Jason Barry says that the Helio 22 chipsets are “very competitive” because of their speed of 2 gigahertz which is quicker than Qualcomm’s Snapdragon 200 and 400 series and faster than Apple’s iPhone processors.

(Adapted from Forbes.com)

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Categories: Economy & Finance, Strategy, Sustainability, Uncategorized

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