Mediatek plans to cut the top price of smart chips by nearly a tenth
News recently, because of rivals qualcomm, spreadtrum upcoming new products for the low end market, combined with China's mainland after the National Day holiday, the client pulled goods slowing, Taiwan chip price-cutting cgu hair division (MTK) started. The price reduction products are mainly based on the main products of the current sales, dual-core MT 6577 and single nuclear MT 6575, with a reduction of 5% to 9%. "There is no such information in the company," said wang xianghui, head of China public relations at mediatek, in an interview with nandu. "this is just a rumor on the market." But she did not directly deny that the rumor was true.
With the price war on chip makers, there has been even news recently that it could even make a $199 smartphone using the 6820 smartphone chip option.
The high pressure of the pre - and - after - signal
At an investor conference held two days ago, mediatek President xie qingjiang said the company's smartphone chips shipped 35 million to 40 million in the third quarter, with the fourth quarter expected to exceed 40 million. "The rapid development of China's smartphone market and the bulk shipment of its dual-core processors are key factors in achieving this performance." Shipments in the third quarter of qingjiang xie also revealed that, in fact is more than the company expected the mononuclear MT 6575, 6577, the largest proportion of dual-core MT especially the latter, has won the Chinese mobile phone manufacturers and a number of USES.
Mediatek conducted in the third quarter results show that this quarter revenue for 29.47 billion new Taiwan dollars ($6.295 billion), up 26.1% from a year earlier, rose 25.7%, among them the largest contribution to the smartphone market in mainland China; Net profit was 49.4 billion Taiwan dollars (10.55 billion yuan), up 47.2% from the previous month.
Although there is no positive response mediatek's official will reduce the price, but in the mobile phone industry consultancy, ce, chief analyst Yang qun, mediatek want to keep in the fourth quarter increased significantly, the price is the most effective technique, rumors that 5% - 9% range is not big.
Yang's statement is based mainly on recent moves by mediatek's competitors. Qualcomm announced the launch of its quad-core and 4G LTE new product package, and plans to produce in the first quarter of next year. From its published product strategy, its quad-core product "nuclear multi-price is not expensive", has the meaning of the high cost performance strategy for mediatek.
And in the low-end market, mediatek still challenge by main rival, spreadtrum, which is known as "Tiger" dual-core smartphone chip is also expected to mass production in the first quarter of next year, and covers the td-scdma and 2.75 G EDGE version. If it is to keep up with the competitiveness of its dual-core product, MT 6577, mediatek will have to move ahead in the fourth quarter, for example by lowering prices
Executive vice President of IC components of electric business TongXin city Zhu Jizhi argues that mediatek if the price cuts, in addition to pressure from competitors, MT 6577 after a cycle of about half a year, after a large number of production has become the mainstream market, the cost was decreased, 10% to 20% reduction belong to normal category.
Intelligent machine to repeat the function machine?
Lower prices, or lower prices. Lower prices have become the main theme of the smartphone, which has been under the influence of several big chipmakers, including qualcomm and mediatek. And the whole industry chain's gross profit rate has also become lower and lower, and it has a taste of the mistakes of the function machine. It has even been reported recently that the 6,820 smartphone chip scheme, which has been spread-through, could even make a $199 smartphone.
The normal cost of the current 6820 mobile phone is about 250 yuan, according to the report. Unless other configurations, such as screens, are used for the worst, 199 yuan is a bit of an exaggeration, and the chips account for only about 10% of the total cost of the whole machine.
Mr Zhu said that if mediatek chose to reduce the price of MT 6515 and MT 6575, it would mark the entry of low-end smartphones into the mainstream. Meanwhile, the cost of the whole low-end industry chain will be reduced and the popularization will be accelerated.
