AH Qualcomm and MediaTek

Report: Chinese OEMs To Use More Qualcomm Chips As They Expand To International Markets

March 18, 2015 - Written By Kristijan Lucic

MediaTek is becoming quite an important player in the mobile chip market. This Taiwan-based company is slowly, but surely grabbing more and more market share on a global scale. At first, they were making chips only for budget devices and more or less only Chinese smartphone and tablet manufacturers were using them, but that’s not the case anymore. The company now has a rather sizeable lineup of solid SoCs, some of which are even great and can compete with the best offerings out there. The company has released their Snapdragon 810 competitor recently, the MT6795 64-bit octa-core chip, which performs great in benchmarks and will start appearing in first smartphones soon. Qualcomm, on the other hand, is still very much the number one mobile SoC manufacturer in the world. Samsung, Huawei and MediaTek are constantly releasing great SoCs and it will be interesting to see if they can go head-to-head with Qualcomm.

That being said, a new report came our way, speaking of MediaTek and Qualcomm’s role in the smartphone market. According to a report from DigiTimes, Qualcomm might play a more important role than MediaTek for smartphone production in China this year, which is somewhat surprising. This makes sense though, considering the fact that Chinese OEMs are trying to increase their share in the international market due to high competition in China, and quite frankly a rather saturated market. According to DigiTimes’s unnamed industry sources, Chinese smartphone manufacturers are going to choose Qualcomm over MediaTek this year in order to strengthen price and performance ratio of their products. MediaTek is making great chips, but they’re obviously not considered as good as Qualcomm’s according to certain OEMs.

MediaTek’s revenue dropped in the first quarter of this year, which is a direct result of all this. It remains to be seen what will happen in the rest of 2015 though. Other sources claim that this won’t affect MediaTek that much, because those manufacturers are not switching to Qualcomm completely, they’re just using Qualcomm’s chips in some of their devices (higher-end ones). Despite all of this, MediaTek expects a great year as far as finances go. Company’s president stated recently that he expects significant revenue growth this year.