Why are MediaTek chips a serious threat to Qualcomm?

On such days last year, Qualcomm topped the chip market. The company's decision to introduce the Snapdragon 765G alongside the Snapdragon 865 meant that low-cost handsets such as the OnePlus Rolling could take advantage of some of the flagship-specific features. But in 2021 the situation is different. This year, attractive and powerful phones such as the OnePlus Rolling 2 and the Poco F3 GT will use MediaTek's Dimensity 1200 chipset. They did not use MediaTek. The company's chips did not have much to say about Qualcomm products, and only some cheap and not-so-powerful phones like the Redmi Note 8 series used them.

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

On such days last year, Qualcomm topped the chip market. The company's decision to introduce the Snapdragon 765G alongside the Snapdragon 865 meant that low-cost handsets such as the OnePlus Rolling could take advantage of some of the flagship-specific features. But in 2021 the situation is different. This year, attractive and powerful phones such as the OnePlus Rolling 2 and the Poco F3 GT will use MediaTek's Dimensity 1200 chipset. They did not use MediaTek. The company's chips did not have much to say about Qualcomm products, and only some cheap and not-so-powerful phones like the Redmi Note 8 series used them.

MediaTek Ascent

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

MediaTek was able to meet the conditions thanks to the introduction of 5G technology for its chips. Change. Specifically, we have to mention the Dimensity 1200, which is a powerful chipset and is a bit of a competitor to the Snapdragon 780G. In addition, we should mention its support for 5G technology. Although chip companies do not usually disclose the price of these products, it is possible that MediaTek has been able to double the attractiveness of its products to companies by offering cheaper chips than Qualcomm.

Overall, over the past 18 months. Not only has MediaTek gained significant market share, but the company's chips also stand out against Qualcomm's best intermediate models. MediaTek has been able to successfully take advantage of the growing demand for 5G handsets, and as a result, the company's revenue in the second quarter of 2021 compared to the same period last year increased by 143%.

Overall, 5G Internet is a stimulus It was key to significantly increasing MediaTek's revenue and allowing the company to significantly increase its market share. According to the latest reports, the company is currently the second largest company in the mobile chip market with a 26% market share.

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

Recently, companies operating in the mobile chip industry have been paying attention to other areas besides this market. Examples include Qualcomm's efforts to enter the automotive, IoT, audio and wearable gadgets. Naturally, MediaTek does not want to lag behind this trend. Along with smartphones, MediaTek makes its chips available to Chromebooks, routers and other devices and gadgets. MediaTek has a strong presence in various industries and is expected to reach $ 16 billion in revenue by the end of 2021 with a 45% growth.

While MediaTek has made significant progress in the mid-range chip sector, the company in The North American market is still struggling. In this market, only a handful of handsets use the company's chips. Given that the company's biggest customers - Xiaomi, Oppo and Vivo - are not present in the US market, it has not yet been able to seriously challenge Qualcomm in this market.

Paying attention to flagship phones

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

Of course, given that MediaTek wants attention Especially in the US market, the situation is likely to change soon. Flagship chips are very important in this market and MediaTek's efforts in this field have not been fruitful yet. For example, we can mention the Helio X30 chipset, which had nothing to say about the performance of Samsung and Qualcomm chips in terms of performance and modem.

But now MediaTek intends to use the latest processing cores designed by Arm and in This field has registered important patents. According to reports, the company will unveil a 4-nanometer flagship chipset with a powerful Cortex-X2 core in early 2022. It is also said that companies such as Xiaomi, Oppo, Vivo, Reelmi, Redmi and Lenovo intend to use this flagship chip of MediaTek, and by doing so, MediaTek will finally be noticed by users in the flagship phone market.

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

What does all this mean for Qualcomm? The latest financial report of this company announces the extraordinary performance of this company and the growth trend of this company is not going to stop any time soon. As 5G technology requires more components and the price of these components is increasing day by day, Qualcomm is in an ideal position to increase its revenue.

For example, even a company like Google for its new flagships If you want to use a proprietary chipset, you will need to use Qualcomm's patents and licenses for 5G and other communications technologies, which are also expensive.

BingMag.com Why are MediaTek chips a serious threat to Qualcomm?

But unlike previous years, Qualcomm no longer has an easy and challenging path ahead. MediaTek and Samsung are strong competitors for Qualcomm in the mid-range phone market, and this competition will soon spread to the flagship market. Samsung will soon introduce AMD's first flagship chip with GPU, and MediaTek will be able to challenge Qualcomm with its 4nm chip.

In addition to investing heavily in markets outside of smartphones, Qualcomm He also earns a considerable income through telecommunication licenses. However, the mobile market accounts for almost half of the company's revenue, and if it wants to continue growing in 2022, it needs to take special action.

  • Everything you need to know about chipsets Know Mobile (SoC)

Source: Android Central

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