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Home > Tech News > Qualcomm started a price war ahead of time, MediaTek's 5G chip was most affected
Qualcomm started a price war ahead of time, MediaTek's 5G chip was most affected

Qualcomm started a price war ahead of time, MediaTek's 5G chip was most affected

By  Pat Gottsdanker 2020-02-11 430 28

Recently, Tianfeng International analyst Guo Mingyi released the latest mobile phone industry report. Qualcomm began to significantly reduce the price of mid-end 5G chips because the demand for replacement of high-end 5G phones did not meet expectations, the report said.

The so-called "mid-range 5G chip" is actually the Snapdragon765 series chip released by Qualcomm not long ago. It is reported that Qualcomm has reduced the price of Snapdragon765 chips by 25%, and the current purchase price is $40, which is significantly lower than MediaTek's Phecda1000 price of $60 (at a cost of about $45). Because of this, MediaTek expects to lose 2000-25 million chip orders from customers of major 5G chip brands, including OPPO and vivo.

Although the price of mid-range 5G chips has fallen, Qualcomm has no plans to be soft at the high end of the market, with its flagship Snapdragon865 processor + SnapdragonX55 baseband still selling at $120,130. Due to the stronger absolute performance of Snapdragon865, better brand image and market reputation, most high-end 5G phones will still use the combination of Snapdragon865+SnapdragonX55 this year.

The report also said that it will be MediaTek's upcoming Phecda800 chip that will be hit hard by the price reduction of the Snapdragon765 series of chips. The price of the Phecda800 is expected to be $40 / 45 (the cost is about $30 / 35), and Qualcomm will undoubtedly be more favored by manufacturers when the positioning and comprehensive performance of the two are relatively similar.

The price war on 5G chips came earlier than expected. Qualcomm will maintain its overall profits through the strategy of "small profits and quick turnover", while MediaTek will once again face the situation of "applauding but not selling". The price pressure they face will continue to rise, and the gross profit margin of 5G chips may be lower than 30%.


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