3G chip shipments soar, MediaTek wants to "return to glory"

As the father of the cottage mobile phone-MediaTek, the company's future focus will undoubtedly be China. MediaTek once led the entire industry in the cottage industry. The rapid growth of cottage smart mobile devices quickly opened the door to the Chinese market, and chip sales were booming.

However, it is undeniable that the cottage is now falling rapidly from its peak state. Can MediaTek regain yesterday's glory? Will the company's development strategy be changed? Can the road of the cottage continue in the end? With this series of questions, the electronic enthusiasts reported and shared the following.

MediaTek used the Turn-key model to achieve the prosperity of the mainland's cottage market, and also made it the second-ranked mobile phone chip giant in the world. However, in the transitional period between 2G and 3G and smartphones, MediaTek seems to "take a nap."

Executives leave, market share is eroded, and 3G development is constrained. The grim situation forced Cai Mingjie (the chairman of MediaTek), who had retreated behind the scenes, to go out again and regain control of the first-line mobile phone department.

Since the beginning of this year, MediaTek has brought MT6575, a new-generation product, to the smartphone market with a target price of 1,000-1500 yuan. Some analysts even believe that MediaTek will help mid- and low-end smart phone terminal manufacturers realize the rapid scale production mode of "soft with Android and hard with MediaTek", so as to "copy" the glory of the past.

Confident MediaTek recently announced that it will increase its estimated shipments of smartphone chips for this year from 50 million to 75 million.

However, in the case of Qualcomm continuing to push the low-end and Spreadtrum's efforts in the TD field, MediaTek's road to "return to glory" is not destined to be too flat.

3G chip shipments soar

At an internal meeting of MediaTek last year, Cai Mingjie said that MediaTek has completed the layout of mobile devices, digital homes and fixed networks, and will move towards 3G and 4G, while cottages have become a thing of the past. "In the past, MediaTek was very successful on 2G chips, but it needs to be accelerated in the 3G field." He admitted.

But MediaTek's first battle did not succeed. At the beginning of last year, it launched the first smartphone chip solution based on the Microsoft operating system, but suffering from the "half alive" market performance of the Microsoft system, MediaTek's first shot did not start.

Subsequently, MediaTek switched to the Android camp without hesitation. In August last year, the second smartphone chip MT6573 was launched, and it is mainly used in domestic brands such as Lenovo, Gionee, OPPO and so on. The Lenovo Qianyuan Smart Machine A60 is its first model, with monthly sales exceeding one million units.

In March this year, MediaTek made persistent efforts to release the third-generation smartphone chip MT6575, including the lower-order version of the MT6575M and the first dual-core MT6575T, which aimed at the smartphone market of 1,000 to 1,500 yuan. According to MediaTek insiders, the MT6575 is more cost-effective than similar chips on the market. Such as the use of ARMCortexTM-A91GHz main frequency and CPU, running memory increased from 512M to 1G, and the use of higher performance graphics processors (GPUs) for enhanced display effects.

"MT6573, MT6575, etc., have so far received good reviews from the market. The overall market estimates that the scale of mainland smartphones this year will be adjusted from the previous 120 million units to 180 million units along the way. With continued high-speed growth and increasing market demand, we will also launch a richer product lineup with higher performance and smart machine solutions that support rich high-end multimedia. "Lu Xiangzheng, General Manager of MediaTek China, told reporters from Time Weekly.

Due to the good performance of the new products, since March, MediaTek ’s smartphone chip shipments have skyrocketed. Many manufacturers, including Huawei, ZTE, and Lenovo, have adopted MediaTek ’s smartphone solutions. It is understood that Huawei's 360 special machine "shine" also uses MediaTek's MT6575 chip solution.

Xie Qingjiang, general manager of MediaTek, said at an investor meeting that the shipment of 3G mobile phone solutions in 2012 is expected to reach 75 million units, a 50% increase from the previously estimated 50 million units. He also revealed that the newly launched MT6575 shipments are expected to account for more than half of MediaTek ’s entire smartphone chip shipments this year.

"The MT6575 solution has also been adopted by many customers such as Lenovo, Gionee, Zhuopu, Shoupai and other customers, and the terminal products have been listed one after another." Lu Xiangzheng said. In addition, there is news that MediaTek's dual-core product end-user mobile phones will be listed in June, entering the dual-core era, and attacking the mobile phone market of about $ 200. MediaTek has recently changed the code name of MT6575T to MT6577, and accelerated the pace of product development. According to industry sources, the next-generation MT6577 platform uses the CortexA9 dual-core processor, and the main frequency can reach 1.2GHz. In response to this, Lu Xiangzheng responded to Time Weekly that MediaTek ’s first smartphone based on dual-core products is expected to ship in the third quarter of this year.

According to MediaTek ’s financial report, shipments of its smartphone chips were 10 million in the first quarter of this year, and shipments in the second quarter are expected to reach 18 million to 20 million. Xie Qingjiang predicts that MediaTek's consolidated revenue in the second quarter will reach NT $ 22.4 billion to NT $ 23.5 billion (approximately US $ 759 million to US $ 797 million), an increase of 14% to 20% from the previous quarter.

"MediaTek, which has encountered problems in the past two years, has put its business focus on 3G, and the shipments of WCDMA chips have continued to rise. This year, China Mobile's TD bidding has also been shortlisted. Currently, personnel and business have stabilized." Gu Wenjun, chief analyst of electronics and semiconductors, believes that MediaTek is on the right track.

The market expects that MediaTek ’s second quarter revenue will rebound significantly from the first quarter. In addition to China ’s “May Day” long holiday demand, MediaTek ’s smartphone platforms 6573 and 6575 are expected to support the second quarter of operations. There was an increase of more than 10% in the first quarter.

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