It looks like the future of Qualcomma and MediaTek, as the largest mobile processor vendors, is getting darker. The number of customers is rapidly shrinking as more and more companies start designing their own systems.
The processor market for smartphones is very large and therefore extremely lucrative. There are several hundred million smartphones in the world, and most of them have processors mainly from MediaTek and Qualcomma. Soon, however, both companies will have to count on significant profit reductions as more manufacturers are planning to produce their own processors.
As the first to go in this direction Samsung with Exynos family of processors, and then the same did Huawei, designing a Kirin. This approach has several advantages, as the smartphone manufacturer then has better control over the device’s performance and can better match the processor to the other components.
Soon, the number of companies that will produce their own CPUs will soon increase, as such plans have just announced new companies. One of them is ZTE, which has just received $ 73.8 million in a Chinese investment fund to accelerate the development of a new processor. Huawei also intends to increase production of its chips by resigning from MediaTek and Qualcomm.
Xiaomi has partnered with Leadcore Technology to jointly develop a new processor for its products, which will be available next year.
If smartphone manufacturers start designing their own chips, then customers will get better and more efficient devices, and that’s good news.
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