Constantly pressured to continue to catch up with MediaTek how to regain 2G status?

"Dual-core smart phones are the trend. We believe that dual-core will gradually become the mainstream of the smart phone market from 2012 to 2013." On June 27th, Lv Xiang, general manager of chip company MediaTek China, said in Beijing. On the same day, MediaTek released the MT6577, a dual-core smartphone platform. It hopes to pull the previously high-end smartphones into the parity market.

In addition, this is another measure that MediaTek is trying to gain more market share in the field of smart machine chips. In the era of 2G, MediaTek created almost the glory of the era of the cottage in the past, with its low price and turn-key solution.

However, after entering the era of smart machines, MediaTek's "slowly beat" market action has made it difficult, and the share of mid- and low-end markets has been eroded by opponents. There are pressing presses for Spreadtrum and ST-Ericsson, as well as Qualcomm, which originally focused on high-end markets.

Some MediaTek insiders admit that recently it is indeed in a state of constant pressure to continue catching up. "The development speed of smart chips is too fast. From last year's 600M to 1G, to dual-core, and immediately there are four cores. Updates The speed is too fast."

From the initial release of the smart phone platform MT6516 for TD to the subsequent 6573, 6575 and now MT6577 dual-core solutions, MediaTek has released four generations of smart phone chip solutions, but its speed is not the fastest in the industry.

"The life cycle of products is getting shorter and shorter." This is Lv Xiangzheng's feelings about the changes in the smart phone chip market in the past. However, he does not think that the time for MediaTek to enter the smart phone market is too slow. In the view of Lu Xiangzheng, MediaTek is waiting for the right time, such as the introduction of a dual-core solution. Lu Xiangzheng believes that this will become the mainstream of the future.

Of course, some people do not agree with this view. "The market's pursuit of dual-core performance is not obvious." Yi Yi Consulting CEO Zhang Yi believes that, according to their survey, the most commonly used typical applications for smart phone users are IM (instant messaging) and news browsing. These also do not have dual or multi-core. Zhang Yi believes that the advantage of MediaTek is still a low-cost "turnkey" solution, seizing previous old customers.

The low-end market in the melee is the most unstable. "Zhang Yi believes that not only the original competitors such as Spreadtrum and other rapid growth in this market, the original high-Qualcomm did not hesitate to put down the competition for low-end, even follow the MediaTek's "turnkey" mode launched the QRD platform (Qualcomm Reference Design ).

According to news from Qualcomm, over half a year, more than 30 OEMs have joined the Qualcomm QRD program, and 17 OEMs have released 28 smart terminals based on the QRD platform. In March and April alone, there were 14 mobile phones released, such as the Sharp SH300T, Lenovo A780, Coolpad 7260+, and 7019, and a variety of mobile phones entered the market for China Unicom and Telecom. There are also more than 100 models of terminals in development.

In the low-end and mid-range dual-core chips, ST-Ericsson also released a dual-core product called UT8500 ahead of MediaTek. The Samsung laptop price of 1,299 yuan is based on this chip. Zhang Daijun, president of the Ericsson China office, made it clear that this year's focus on the low-end mobile phone market, MediaTek was once crowned the "King of the Mountain" title, but in the era of smart machines, MediaTek is unique in the low-end market. Was suddenly broken.

“The pattern of the low-end smart phone chip market is to cooperate with more Chinese domestic manufacturers and introduce more mainstream mobile phones with prices ranging from 1,000 to 2,000 yuan.

In fact, one of the direct reasons that led chip makers to fight the low-end market is that there are too many players in the popular smartphone market. In particular, after seeing the concept of “thousand yuan smart machine” getting fired up, traditional mobile phone makers, domestic manufacturers that have transformed cottages, and even internet giants have all stepped in. Despite their different purposes, they all introduced their own low-end smartphones.

Zhang Yi believes that most of the thousands of smart machine manufacturers in the marketing, inventory pressures are basically fixed costs, so they are hoping to further reduce the cost of the phone itself, which is an important chip. So in his view, the future battle between chip makers in the low-end market will be even more intense.

How to regain your status?

MediaTek released its first quarter earnings report as of March 31, 2012, showing that its net revenue was approximately NT$19.6 billion, a 13.3% decrease from the previous quarter. MediaTek explained in its financial report that the first quarter was the traditional low season for consumer electronics. In addition, due to price competition from competitors and weak demand for some product terminals.

According to MediaTek’s latest sales in April and May of this year, there was also a slight drop from the previous month of around 3%. For MediaTek, how to introduce new solutions for smart machines as soon as possible to retain old customers has become the key to regaining its market position.

According to Lu Weibing, executive vice president of Jinli Mobile, they started to collaborate with MediaTek in 2005. "From the functional machine to the smart machine, from single-core to dual-core, Mediatek has adopted the program." Lu Weibing said that from the first two months of July, Jinli will launch 6 to 7 products based on the MT6577 dual-core solution, covering three major 3G formats. Prices range from more than 1,000 to more than 2,000 products.

When interviewed by reporters, Lin Junxiong, senior marketing manager of MediaTek's wireless communications division, said that at present, MediaTek's smart chip customers mainly have two major categories: first, new customers such as 360 mobile phones, and second, 2G feature machine customers. In his view, the latter is also the core customer of MediaTek.

“The arrival of the era of smart machines is an impact on all mobile phone manufacturers, either transitioning or leaving.” Lin Junxiong said that for the old customers who had previously started cooperation with feature machines, MediaTek’s smart machine solution was equivalent to providing them with A runway helps them complete the transition faster.

Lin Zhihong, director of global marketing at MediaTek, told reporters that after several generations of smart machine platform development, MediaTek can significantly shorten the development cycle for new products launched by customers. “For example, 6516 takes six months, and 6573 takes about three to four months. Now the latest 6577 can be shortened. To 2 months."

Lu Xiangzheng said that this is the advantage of MediaTek. The accumulated experience of MediaTek in the "turnkey" model is not something that other manufacturers can learn in a day or two. According to report, in addition to Jinli, Lenovo, TCL and other vendors will soon launch products based on MediaTek's latest smart platform.

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