Xiaomi to Reportedly Partner With Mediatek for Custom Smartphone Chips
The relations between Xiaomi and MediaTek have grown over the years. In recent times, the Chinese tech giant has sourced more and more chips from MediaTek and, now, a new report suggests that both firms will collaborate to develop a new custom made smartphone chip for future smartphones....Unfortunately, this is still an unconfirmed report so take it with a pinch of salt.
(Gizmochina, June 30)
(Gizmochina, June 30)
- If true, this would obviously be about margins and being competitive in the sub-$300 segment – which Chinese vendors dominate. Two-thirds of Xiaomi’s smartphone unit sales in May came from the $100-$299 segment.
- The trend to proprietary chips has also been in line with increased focus on the mid-range from key vendors – Samsung is the best example and we’re seeing the A51 shine right now.
- In Xiaomi’s case, going proprietary could allow it to provide more value, helping to maintain its growth trajectory in an increasingly crowded segment.
- Many OEMs would like to go this route, but development challenges can be prohibitive. What we may see are more partnerships for custom chips moving forward.
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Jul 7, 2020
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