Analysis of Competitive Pattern of Intelligent Machine Chip in China

Recently, JP Morgan reported that Mediatek's chip sales reached 8 million units in China in June and was the first to exceed Qualcomm. The competition in the smart phone market in China has become fierce. The international big brands have set aside their efforts in the field of thousands of machines, and traditional domestic manufacturers have accelerated the looting of the 1,000-yuan machine market. The Internet or other non-mobile phone industries have also been squandering this fat. At the same time, smart phone chip makers have not been idle. The launch of MediaTek 3G chips has gradually gained recognition from manufacturers. Qualcomm lowered the banner of "nobles" and launched the QRD platform to point to the market of thousands of machines. In the face of multiple melees, the smart machine will reach the hundred-dollar era just around the corner.

MediaTek's 3G smart era is back

In the 2G era, foreign mobile phone chip makers disapprove of the low-end market. MediaTek shortened the cycle of mobile phone production and marketing with its integrated solution, bringing good news to domestic small and medium-sized handset manufacturers, and thus gaining a place in the mobile phone chip market. However, the initial attention to the 3G field was insufficient. With the rapid development of smart machines and the popularization of 3G networks, ordinary mobile phones can no longer meet the needs of consumers. MediaTek was once out of the game. Last year, MediaTek, which was awake, launched 3G chips. However, "soft persimmons" have always been pinched. In December of last year, Qualcomm launched the QRD platform for small and medium-sized software and hardware companies to help them shorten the production cycle and cost savings of smart machines. This is a big blow to MediaTek. It is reported that currently there are about 30 small and medium mobile phone manufacturers that have joined Qualcomm.

In the field of smart machines, it is clear that Qualcomm is eating a bowl and looking at the pot. However, Qualcomm will not be able to lose the sesame seeds and lose the watermelon. The high-end market is still its main direction.

In the Qianyuan market, Qualcomm currently uses the 7227A and 8255 plans. Based on Cortax-A5 and Cortax-A8, respectively. The MediaTek MT6575 is based on the Cortax-A9. The performance advantage is self-evident. With technical breakthroughs, it is clear that MediaTek's "waist" is much harder. Based on various factors such as price, major domestic mobile phone manufacturers have also tried MediaTek's plans. In addition, MediaTek acquired its competitor, Morning Star, during the Dragon Boat Festival. This is the largest M&A case in Asia's chip industry in the past decade. This is an indication of MediaTek's determination to enter the smart phone market and pressure from other chip makers such as Qualcomm.

Mr. Cai Mingxian, chairman of MediaTek, disclosed that "the operating trough has passed." His confidence is not unfounded. Relevant data show that MediaTek's combined revenue in the second quarter was 23.438 billion yuan, a 19% increase in the quarter. Legal persons estimate that the previous quarter's profit should be able to surpass the level of 2.5 billion yuan. The pre-tax profit per share is expected to exceed 2.25 yuan, which is better than the first season. In June, the smart phone chip market in China surpassed Qualcomm. All sorts of signs show that MediaTek really stood up again.

MediaTek Qualcomm Face-to-Face Aggravates Intelligent Machine Fight

At present, the domestic smart machine market has become the Red Sea. Apple, Samsung, and the two giants divided up the high-end smart market. Huawei, ZTE and other domestic and foreign mobile phone manufacturers were also angry birds and spared no effort in rushing to the smart machine. Indeed, with the advent of the 3G era, everyone in the huge market did not want to let go of this gold.

The huge market has also brought unprecedented opportunities for mobile phone chip makers. With the demand of consumers, there will be the development of smart machines. With the demand for smart machines, the spring of smart machines will follow. The data released by the Institute of Telecommunication Research of the Ministry of Industry and Information Technology recently showed that since the second quarter, China’s smart phone shipments have surpassed functional machines for three consecutive months, with a market share of over 50%, and the market share in June was as high as 56.9%. Domestic smart machines have undoubtedly become the mainstream of the market, and the competition of smart chips will surely be in full swing. In addition to the continuous improvement of technology, prices are certainly a key factor in determining market share. In the absence of sufficient technological advantages, no chip makers dare to own themselves in a "high profile," and price wars are inevitable.

With the continuous improvement of smart phone chip technology and the trend toward reasonable prices, the manufacturing threshold of smart phones is obviously much lower. This has led to the infiltration of other non-mobile phone industry into this door. The success of Xiaomi's mobile phone is an example. Internet companies such as Alibaba, Tencent, Sina, and 360 are also eager to try. Of course, fierce competition has also led to the bankruptcy of many “white box” mobile phone manufacturers in the coast. According to industry sources, there are about 100 manufacturers in the smart phone market in China. The competition of chip manufacturers will undoubtedly fuel the market of multi-player smart machines.

Smart machines will enter the era of hundred-dollar, domestic manufacturers seize survival

With the reduction of the production cost of smart machines, competition among major mobile phone manufacturers has intensified, and internet companies continue to pour in. Many cottages are also just about to split their “smart” brands. Smart machines are no longer “luxury” products. With the pressure of competition, the price of smartphones has repeatedly touched the bottom line. It is reported that since March of this year, the price of a thousand yuan smart machine has continuously decreased. The price of the mainstream thousand yuan machine has dropped to below a thousand yuan in some of the 1300 or so, and there have even been many models of 500 to 700. The era of smart machines is no longer distant.

Smart machines are no longer "rich and handsome," and the profits of mobile phone manufacturers have become problems. Reliance on sales alone is not a long-term solution. The low price, performance can not be low, which poses a challenge to many manufacturers, how to increase the cost of the company is the key to success or failure.

We must first dare to innovate. I have but others do not, others have and my cost is low, can maintain a certain profit, can survive in the cracks; should pay attention to the user's experience. Although there are differences in the price and appearance of smart phones on the market today, the hardware and software aspects are similar. This seems very monotonous intelligent machine. Manufacturers must combine hardware and software to meet the needs of users and enrich their experience.

Second, reduce sales costs and increase profits. At present, many mobile phone manufacturers rely on e-commerce to develop their own sales scale and enrich their sales channels. This is a wise move in the current form. Relying on the low threshold, he entered, but the status quo was destined to be squeezed out, or even directly "crushed." Indeed, the market is ruthless, and it is this ruthless "perfect defeat," so that the entire market will no longer appear mixed.

The “Hundred-dollar Era” is the desperation of the thousand-yuan smart machine, but there are opportunities in the market. It is blessing or curse that is not absolute for manufacturers.