Entry-Level Android Phone Chips Face Declining Demand: Report

Qualcomm and MediaTek are set to phase out some series of their mobile system-on-chip (SoC) designs in response to reduced interest in those, according to unnamed industry sources cited by DigiTimes. Specifically, those are said to include SoCs with performance below that of Qualcomm's Snapdragon 600-series offerings and MediaTek's Helio P20 products. The shift in attention is reportedly the result of a change in smartphone manufacturers' approach to the market. Companies are essentially placing more effort into focusing on mid-range and performance handsets instead of budget-tier devices in order to maintain profitability (margins) and growth. Component manufacturers are answering the new demand by pouring more resources into those tiers, which will eventually see less capable lines of technology phased out, as per the same report.

That doesn't necessitate the disappearance of budget phones, however. The general trend seems to be toward a higher standard of performance for smartphones across the board. In short, the entire spectrum of Android devices is expected to get a boost in performance over the coming months to keep up with demand for better performance. That means that Qualcomm will be moving efforts away from its 200-series SoCs to put more emphasis on its 400-series silicon. Meanwhile, it will continue efforts aimed at its 800-series SoCs and its new 700 series such as the Snapdragon 710. The Snapdragon 600-series chips will maintain their position in the middle, as well. Conversely, MediaTek will be consolidating its SoCs in the mid-range with entries such as its Helio P22. Simultaneously, it will be reintroducing chips at the upper end of the spectrum with chips centered around incorporating A.I. That includes MediaTek chipsets such as its Helio P60, launched back in February following a hiatus from high-end silicon manufacturing for the company.

MediaTek's new approach, especially its new Helio P22, has already been well-received, according to the same sources. That's thanks in large part to its A.I.-specific approach and the downscaling of chips to the 12nm process. The company is expected to perform better still in the second half of the year with new orders for its P20-series SoCs. Qualcomm is also having a good showing from its Snapdragon 710 already reportedly set for use in new Xiaomi, Oppo, and Vivo handsets during that same timeframe.

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Daniel Golightly

Senior Staff Writer
Daniel has been writing for AndroidHeadlines since 2016. As a Senior Staff Writer for the site, Daniel specializes in reviewing a diverse range of technology products and covering topics related to Chrome OS and Chromebooks. Daniel holds a Bachelor’s Degree in Software Engineering and has a background in Writing and Graphics Design that drives his passion for Android, Google products, the science behind the technology, and the direction it's heading. Contact him at [email protected]
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