Published in Mobiles

MediaTek to reap benefits of Chinese smartphone push

by on12 March 2015


More brands expanding westward, using MT products

MediaTek stands to gain big if Chinese phonemakers gain a foothold in western markets. 

According to Strategy Analytics, the Taiwan-based chip designer will benefit from overseas expansion, spearheaded by Chinese premium smartphone brands. 

Most Chinese phonemakers rely on MediaTek chipsets

Although Huawei has turned to in-house Kirin processors, MediaTek still dominates the mobile landscape in China. It is not alone, as Qualcomm still have a sizable chunk of the market, especially in the high-end segment.

However, makers of cheaper handsets, most of which are still 3G designs, tend to rely on MediaTek chips. These smartphones are not made by heavyweights like Huawei, Xiaomi, ZTE or Meizu, but a collection of small brands focusing on value.

In years gone by, Qualcomm enjoyed a clear lead in terms of connectivity, but the playing field is levelling. MediaTek now has affordable 4G products, allowing it to compete in international markets as well. Qualcomm still dominates the high-end, but MediaTek’s latest high-end parts have already found their way into flagship designs from Meizu, Zopo and a few other brands.

Will westerners ditch brand snobbery and join the fun?

Huawei and ZTE have made it clear that they are planning to expand into western markets. Xiaomi is going west, too, along with countless smaller brands.

A lot of western consumers are already familiar with these brands, but what about smaller Chinese phone brands that buy loads of MediaTek chips for low-end and mid-range phones? At this point it is more or less a matter of brand snobbery, as smartphone design has matured and even very small outfits can come up with relatively competitive designs.

But will western consumers buy these phones? Probably, but not in huge numbers. What sort of phones are we talking about anyway?

The new Mlais M52 Red Note phablet is a good example. It has a MediaTek Cortex-A53 octa-core SoC, 2GB of RAM, 16GB storage, 13-megapixel camera and 3200mAh battery tucked underneath a 5.5-inch 720p IPS display. It also supports LTE in some markets, which doesn’t sound bad for a $149 device

However, small brands like this will have to get in line – first we have to see what Huawei, Xiaomi and ZTE can do in the west.

Last modified on 12 March 2015
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