Entering 2015, mobile phone manufacturers are bustling, and chip makers are naturally unwilling to be lonely. MediaTek released a new processor brand Helio, hoping to counter the high-end; Samsung Exynos 7420 debut, running the break; Qualcomm released the new architecture of the Opteron 820, while the mobile phone equipped with the Snapdragon 810 is also unveiled; Intel Sofia plans to implement The smart phone chip changed its name to X3 and entered the low end. Chip makers can be said to be the Eight Immortals across the sea.
Competition in the low-end market is intensifying
As we all know, in the smart phone chip market, it was originally the world of Qualcomm and MediaTek, and the share of other manufacturers was not large, and the low-end products of these two companies basically evolved according to the evolution of the ARM public version. For example, in 2013, MT6589 became a big hit, and Qualcomm followed suit, giving up the weak ARM A5 core and also adopting the A7 core launch product. At the end of 2014, ARM's better performance, lower power 64-bit A53 core appeared, Qualcomm and MediaTek continued to follow, dominated the thousand yuan machine market.
But the reality is that the hardware of smartphones has begun to overslage, and the gap between low-end products and high-end products is shrinking. The seemingly old ARM A7 core still has value. As long as the system is properly optimized, the A7 core smartphones will remain fluent. It was this opportunity that was seen. At the end of 2014, Xiaomi invested in the core and obtained the authorization of 1860 and launched the red rice 2A. And the exhibition spoiler is precisely this market.
Recently, Spreadtrum released the SC9830A built-in quad-core ARM Cortex-A7 application processor, clocked at 1.5GHz, supports 4G five-mode, supports dual-card dual-standby function, integrated dual-core ARM Mail 400MP, NEON multimedia processor, supports 1080P HD video And a 13 megapixel camera. It should be noted that this specification is almost the same as the LC1860 of the core, and in terms of price, Spreadtrum can kill the whole machine to 400 yuan, even lower than the red rice 2A. At present, the price of low-end mobile phones using Qualcomm and MediaTek chips is still around 1,000 yuan. If the mobile phone with similar experience is only 400 yuan, it is undoubtedly very lethal.
Looking at the market structure faced by Spreadtrum, its target competitor is MediaTek. Zhao Weiguo, chairman of the Ziguang Group, said in an interview with the media last year: "Ziguang hopes to surpass MediaTek in about 5 years and become the second largest IC design company in the world."
According to the data, Spreadtrum’s revenue last year was 1.2 billion U.S. dollars. Five years ago, MediaTek’s revenue reached 2 billion U.S. dollars, and now it is as high as 6.6 billion U.S. dollars. It is the top 10 in the global IC industry and the second in the mobile phone chip industry. In this regard, some insiders believe that: "MediaTek achieved rapid growth through mergers and acquisitions, Spreadtrum may re-take the development path of MediaTek, and the involvement of capital will undoubtedly help Spreadtrum to take shortcuts."
According to media reports from Taiwan, MediaTek's revenue in February fell sharply, down nearly 40% year-on-year. Facing the strong competition of Spreadtrum, MediaTek has planned to adjust the price of 3G chips, which will reduce the price by 10% to 15%, and the 4G chips will also be slightly reduced.
MediaTek pushes high-end brand Qualcomm plus low-end
Qualcomm and MediaTek have always struggled in the chip field, and Qualcomm is the absolute leader in the mobile phone industry processor. However, the speed of MediaTek’s development should not be underestimated. It is understood that MediaTek entered the 4G chip market for the first time in 2014, with shipments reaching more than 30 million.
At the beginning of the year, MediaTek just launched a CDMA standard 4G single chip in Beijing, including the quad-core product MT6735 for the low-end market and the eight-core product MT6753 for the mid-to-high-end market, breaking Qualcomm's exclusive position in the CDMA field. In 2015, Qualcomm was added to add momentum.
Then, MediaTek released Helio, a high-end smartphone chip brand, to the Chinese market to meet the growing demand of the high-end smartphone market. Helio's products integrate a variety of advanced mainstream computing technologies and have a competitive edge in multimedia innovation, bringing the best CPU performance and multimedia experience to the next generation of smartphones. With the launch of Helio, MediaTek will accelerate its presence in the high-end smartphone market.
According to the reporter, "Helio" was taken from Helios, the name of the ancient Greek sun god. As a high-end mobile processor brand of MediaTek, Helio includes two series: the top performance version of the Helio X series and the tech fashion version of the Helio P series. The Helio X Series offers great computing power and multimedia capabilities; the Helio P Series offers optimized PCBA size and ultra-low power consumption, making it ideal for high-end features in ultra-thin smartphone designs. The first smartphones equipped with Helio chips will be available in the second quarter of this year.
Regarding why the high-end chip brand was released, Xie Qingjiang, president of MediaTek, said in an interview with the media that the brand image and products of MediaTek are not matched at present. Previously, the market share of products was mainly increased, but in the future, the high-end products in the mobile market are stable. MediaTek's goal is to establish a complete coverage from the entry-level to the high-end, flagship product line. The high-end market recognition and product image are both active development directions and customer requirements.
"The fierce competition in the mobile phone market has made the processor manufacturers behind the scenes pay more and more attention to the establishment of consumer brands. In the past, with Intel 'intel inside' and Qualcomm Xiaolong brand as representatives, processor manufacturers are trying to pass the brand. Construction to improve consumer awareness. MediaTek hopes to change consumer perception through new brands to increase consumer awareness, at the same time, the new brand will also play a role in promoting its entry into the European and American markets." An industry insider told reporters.
According to the reporter, in 2015, MediaTek's goal is to win 20% market share of global 4G chips and target 2016 at 40%. This figure was less than 5% in 2014. This is undoubtedly no small pressure for Qualcomm, which dominates the industry.
Unlike MediaTek's entry into the high-end market, Qualcomm, which has an advantage in the high-end market, does not seem to be worried about MediaTek's offensive, but instead exerts its strength in the low-end areas of MediaTek. To this end, Qualcomm has strengthened its promotion of QRD for MediaTek's “turnkey†model, and threatened to fully QRD the future Qualcomm mobile phone chips. This means that the advantage of Qualcomm's QRD model in the high-end will inevitably spread the pressure to the low-end market. At that time, the only thing that MediaTek can deal with is to continuously improve the cost performance of the Turnkey model, so that its revenue and profit will be more than Before the greater pressure.
"At present, the growth and rise of domestic chip makers such as HiSilicon, Spreadtrum, and Intel's offensive against the Chinese market will bring some pressure on MediaTek this year. This is the main reason why MediaTek entered the high-end market." An industry analyst told reporters .
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