Low-end 4G chip spoiler low-end market

Speaking of mobile phone chips, we naturally thought of Qualcomm and MediaTek. Although the mobile phone chip industry also has Nvidia, Intel, etc., but the two are still not at the same level. It has to be said that the comprehensive development of smart phones in recent years has brought about the prosperity of the mobile phone chip industry, and it has created such mobile phone chip giants as Qualcomm and MediaTek. The battle between Qualcomm and MediaTek has always existed, but we also clearly see the difference between the two routes and the direction of the market.

Qualcomm has always been on the high end of the road, in the low-end smart phone market rarely see the figure of Qualcomm, and the other hand, MediaTek, starting from the cottage, its cost-effective "turnkey" solution favored low-end users favor This forced Qualcomm to upgrade its "combat" strategy in the low-end market.

With the development of smart phones, the market saturation in developed countries such as Europe, the United States, and the Asia-Pacific region has become increasingly apparent, while the booming development in emerging markets such as India, Southeast Asia, and Africa has brought tremendous business opportunities to the smartphone industry. Although these underdeveloped regions are mainly consumer low-end smart machines, the huge population base has created a huge market capacity. Everyone sees this as a fat, attracting major manufacturers. As a big cell phone chip company, Qualcomm already smelled the tempting taste of the low-end market. Qualcomm released a high-profile entry-level 4G chip in September and is ready to attack the increasingly prosperous low-end smartphone market.

As soon as the news was spread, it attracted the industry. There have also been two voices, one of which is that Qualcomm puts its lower body into the low-end applause and expects that the application of Qualcomm chips on low-end smartphones can bring a different and better user experience. The other is questioning Qualcomm's aggressive entry into the low-end smart phone market. How does the company plan to deploy it when MediaTek controls more low-end markets? How much is the odds?

From the author's point of view, in addition to the expectations of Qualcomm, consider more of its strategic market layout and how much of its considerations.

First of all, in terms of market strategic layout, there are nothing more than two kinds. One is to fully cast down the net and use Intel's strategy of attacking the flat-panel market to establish effective cooperation mechanisms with the majority of Chinese white-label manufacturers. In my view, this method is suitable for the development of new markets. In the more mature markets such as Europe, the United States, Asia-Pacific, etc., if Qualcomm and the vast majority of white-brand manufacturers cooperate, their brand added value will certainly be greatly reduced, and increasingly discerning consumers It is bound to give up Qualcomm because the mobile phone brand is not "tall" and will at least hesitate. The other is the cooperation with the brand mobile phone manufacturers, special models for specific consumers, the advantage of this approach is that it can very well protect the brand value of Qualcomm, which will be able to meet the low-end smart phone consumer groups such as The needs of students, working-class workers, etc., directly attack MediaTek to seize its market share.

In both layouts, the former is more than "speed" and the latter is more "power." In terms of speed of entry into emerging markets, MediaTek is already one step faster. It depends on Qualcomm’s explosiveness at the back, and it is faster, and it has a better chance of winning in the low-end smartphone market. In terms of strength, although Qualcomm is slightly better, MediaTek is not afraid of the role of the Lord. Under the circumstances that MediaTek has taken control of the low-end market, Qualcomm may have to work hard to grab a portion of market share from Qualcomm's mouth. . Regardless of whether it is "speed" or "power", it is necessary to follow Qualcomm's follow-up. Only by combining two aspects can Qualcomm capture a certain market share in the low-end smartphone market.

Second, it is how Qualcomm will proceed from its own construction to increase the chance of success. We must first understand that Qualcomm’s brand influence is there and technology is also there, which is Qualcomm’s advantage. Therefore, it seems that the momentum of Qualcomm's early period is very fierce and will cause certain pressure on MediaTek. This is to be proud of Qualcomm's brand advantages and technological quality advantages. However, it is not enough to rely solely on brand and technology advantages to gain a foothold in the low-end smartphone market. In my opinion, Qualcomm needs to make efforts in the following two areas before it is possible to attack the city under the eye of MediaTek.

First, price parity. This is particularly important because low-end smart machines are inherently low-profit. If Qualcomm still adopts a two-way charging standard in terms of low-end chips, it imposes high royalties on enterprises, causing either companies to be reluctant to save money or consumers not willing to In the embarrassing situation of money, this is a matter of moving a rock and hitting one's own feet. Even stations are not stable, let alone fighting with MediaTek. Secondly, the establishment of Qualcomm's own low-end chip industry ecosystem is to establish a sound industrial chain, including market adjustment, R&D, production, and sales. This is a guarantee, but with Qualcomm’s enormous financial and material resources, this is the point. Not a problem.

Therefore, in summary, the high-end market's attitude of lowering the high-end chip market is to meet its own development needs and market development needs. However, with MediaTek firmly in control of the low-end market, Qualcomm still has to work hard to make waves. However, Qualcomm's brand influence and technical advantages, coupled with its own development in the low-end chip market, will directly increase the chance of winning MediaTek's chances. Of course, it is unrealistic to completely bring down MediaTek. In the future, the low-end chip market will continue to compete.