Low-end chip market "price war" ceaselessly

March 19 news, in order to actively position the low-end market, the market rumors that Qualcomm (Qualcomm) this week for the low-end products started the first quarter of the second quarter price cuts. In this regard, whether its rival MediaTek is following the price cuts has attracted much attention from the market.

As the mainland market is the headquarters of MediaTek, and it is equally optimistic about the demand for low-end smartphones to replace 2G feature phones, following the launch of the first smart phone chip "MT6573" last year, this year it will also play the "MT6575" series. Qualcomm and MediaTek will this year Compete in the low-end smartphone field. MediaTek has never commented on product prices.

Looking at the rapid development of low-priced smart phones on the mainland, Morgan Stanley released a report on the 16th, which raised MediaTek’s investment rating from “neutral” to “plus,” and revised the target price from 245 yuan to 322 yuan. MediaTek shares opened lower yesterday, rising 2.5 yuan late, to 282 yuan to close, relatively strong performance in the broader market.

Vice President of Global Business Development of Qualcomm Greater China, Shen Jin, expressed at the beginning of the year that he was very optimistic about the demand of the smart phone market in mainland China, and also expressed that Qualcomm will attack the Chinese market and will cover all markets in the low, medium and high-end markets. Shen Jin said that over 60 million smart phones were sold in mainland China last year, which will surpass the US and Europe in the middle of this year and become the world’s largest smartphone market. The total sales volume at the end of the year will reach 160 million, and China will account for the importance of Qualcomm. Business weight.

In order to actively position cards, Qualcomm has continuously launched aggressive pricing strategies since the second half of last year, especially the A series of products such as the MSM7225A and 7227A, which are mainly used in the low-end market, to seize the market for the “MT6575” series of price reductions against MediaTek.

As MediaTek’s first dual-core product “MT6577” (formerly “MT6575T”) will be mass-produced in the second quarter of this year, Qualcomm will cut prices again this week for the A-series products, becoming the first wave of price reduction in the second quarter. .

The smart phone chip supply chain said that after experiencing wave-by-wave price adjustments, the prices of chips for Qualcomm and MediaTek have gradually narrowed. Mediacom’s price advantage has plummeted and Qualcomm has threatened MediaTek.

However, there are quite a few companies in mainland China that use MediaTek's solutions. In the mobile phone chip supply chain, MediaTek smartphone chip shipments are expected to grow to 7 million units in April, up from more than 5 million in March. (Responsible for: Gong Fenmei)

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