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MediaTek's strategy to convince Chinese OEMs to adopt SoC Helio

So long ago MediaTek has been the undisputed padrona for mid-range smartphones, thanks to chipsets with excellent performance-cost ratio. Qualcomm, a historic rival, has always been oriented to a high-end product, so duality among chipset companies is basically largely theoretical, thanks to a fairly subdivision of market slices.
However, this year the Taiwanese company (MediaTek precisely) is not experiencing a positive time because of a falling market share, resulting in substantial growth in competition and lack of interest in its chipsets.

Although the company has several good offers in the catalog, such as the Helio P25 for example, the Hi-End segment represented byHelio X30 remains in fact scarcely accessible, being Qualcomm undisputed master. But the biggest problems come, unexpectedly, even from the low-end offers, where MT6737 has failed in the competition with Qualcomm's offer.

Based on this trend, the latest data confirms that the company is slowing down the production of high-end SoCs, to focus precisely on middle band, where they have always obtained the best performances and in which they can undoubtedly count on a solid experience. However, this perhaps late reversal is not enough to improve the results and the company is seeing its potential customers choose Qualcomm's offer, instead of their Helio P.

MediaTek's strategy must therefore become more aggressive. Qualcomm is undoubtedly in the eye of the cyclone because of the scandals and investigations that see it protagonist, most of which derive from the reports published by the antitrust and recent rumors about 'acquisition by Broadcom. By leveraging on these aspects, MediaTek is therefore trying to convince Chinese smartphone sellers to adopt their Helio P chipsets and to cut any Qualcomm report.

MediaTek's strategy to convince Chinese OEMs to adopt SoC Helio

La strategy set up by the Taiwanese home comes after some data that Chinese OEMs, medium and low bandwidth manufacturers are closely monitoring the possible impact that Qualcomm might have in the wake of the acquisition by Broadcom.

With the goal of running the shelves and avoiding bottlenecks due to the sudden unavailability of the chipset, Chinese smartphone sellers are trying to secure supplies for the coming months by removing orders that secure them. Obviously the choice can only fall on known names, MediaTek and Qualcomm, and this can only make competition more bright than ever.

The focal point of the story is that if Broadcom acquires Qualcomm, Broadcom would meet the budget allocated to mid-range Qualcomm chipsets to meet the increase in ASPs. The newborn company will therefore concentrate on the peak segment, where the Snapdragon 800 series is the undisputed flower.

So positive news for Mediatek, which would see in the success of the acquisition one great opportunity to go back to the market, in virtue of the above-mentioned mid-range strategy.

It is fair to remember, however, that many aspects of Broadcom's offer to acquire Qualcomm are just speculations and the only reliable news concerns the rejection of $ 130 billions of dollars by the latter.
So even if the deal could give more opportunities to MediaTek, the chipset manufacturer should maintain some independence from the outcome of the thing. First, an internal action aimed at solving the problems that caused the decline in sales would be desirable.

A winning strategy, based solely on their capabilities and geared to making their chipsets a more attractive choice for smartphone vendors in 2018, would surely sleep more relaxed at the Taiwanese home.

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[source]

Roberto Bove
Roberto Bove

Always passionate about "avant-garde" devices, I have experienced all the technological evolution of the last 25 years, with particular attention to the smartphone world. I consider Xiaomi and its ecosystem the greatest novelty of recent times. And we're still at the beginning ... Write me: [email protected]

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