Qualcomm is the dominant smartphone chipset supplier around the world and in the U.S. market, but MediaTek hopes to change that, especially as average selling prices for phones continue to drop. MediaTek is the premier silicon provider in the entry-level and mid-range smartphone market in China and the company has been steadily boosting the performance of its chips, especially by combining them with LTE modems. Now, MediaTek is looking beyond China and East Asia.
Qualcomm is expected to provide Samsung Electronics with a new version of its Snapdragon 810 chipset in March for the next version of Samsung's flagship Galaxy S smartphone, according to a Wall Street Journal report. The report came after Bloomberg reported that Samsung would not use Qualcomm silicon in the next version of its phone because the Qualcomm chipset overheated during testing. Instead, Samsung will reportedly use its own chipset.
Samsung Electronics will eschew a Qualcomm chipset and use its own silicon for the next version of its flagship Galaxy S smartphone because the Qualcomm processor overheated during testing, according to a Bloomberg report.
Intel ended 2014 how it started it when it comes to mobile: by losing around $1 billion. The silicon giant reported a $1.11 billion loss in its mobile communications group in the fourth quarter, bringing total 2014 losses in the mobile unit to $4.2 billion.
Broadcom got out of the cellular baseband business in mid-2014 because it was losing $2 million per day staying in that market, which is dominated by Qualcomm, Intel, MediaTek and others, according to CEO Scott McGregor.
During his recent visit to China, President Barack Obama pushed his Chinese counterpart, Xi Jinping, on the use of Chinese antitrust policy to limit royalty fees for foreign companies, according to a Reuters report. The high-level involvement comes as China appears close to nearing a decision on royalty fees that could see Qualcomm slapped with a $1 billion penalty.
Longtime Qualcomm executive Rob Chandhok, who spearheaded Qualcomm's efforts in the Internet of Things market, is leaving the company, according to a Re/code report.
Intel intends to cut the losses in its mobile chipset business next year, but will still likely lose billions of dollars in the mobility market in 2015. However, top company executives have said that the losses have been necessary to get the silicon giant into mobile after years of passivity.
Qualcomm executives noted that the company continues to face hurdles in China, and partially as a result the firm said it is now expecting a slightly more conservative growth rate during the next five years. However, the chipset giant still thinks it has plenty of room to grow thanks to increasing LTE and smartphone adoption and its decision to move into new areas, such as supplying silicon for servers.
Intel is going to merge its chipset unit targeting smartphones and tablets with it PC chip unit, arguing that the distinction is blurring between different computing models.