5G chips sell for $70 a: Where’s MediaTek’s bottom gas?

According to Taiwan’s Economic Daily, MediaTek began making offers to customers after the official release of its first 5G single-chip Dimensity 1000 (internal code MT6885) on November 26. Industry insiders had expected the chip to cost about $50, which was a surprise, but with 5G chips on the market scarce, the Dimensity 1000 price skyrocketed to $70 a barrel, which could be said to be sky-high.

In addition, the market also reported that the same series of high-frequency version of the MT6889 sold for as much as $70 to $80, far higher than the average 4G chip $10 to $12 price, the price increase of five to six times.

The bottom of the “Lion’s Big Mouth”

The first 5G chip dares to “lion big mouth”, MediaTek’s bottom gas is where? There are the following:

First, the Dimensity 1000 performs well in terms of performance. According to mediatek, the Dimensity 1000 is the world’s first 5G single chip to support 5G dual carrier aggregation, the world’s fastest 5G single chip, the world’s most charged 5G baseband, the world’s first 5G-5G dual-card dual-use support, the world’s first 5G single chip with integrated Wi-Fi 6, The world’s strongest GNSS satellite positioning navigation system, the world’s first Cortex-A77 quad-core chip, CPU multi-core running division of the world’s first, GPU performance world first, AI performance world’s first.

5G chips sell for $70 a: Where's MediaTek's bottom gas?

Secondly, and most importantly, there is a lack of competition on the market. Earlier, Taiwan’s “Business Times” reported that the market out of the Qualcomm Dragon 7250 in Samsung 7nm EUV ultra-UV lithography rate of less than 30%, may affect the brand mobile phone manufacturers’ willingness to purchase. MediaTek backed by TSMC’s 7nm EUV ultra-UV lithography technology, which will be mass-produced by the end of this year and will significantly expand production capacity in the first quarter of next year.

Third, China’s 5G mobile phone market is about to explode. China Mobile expects that by 2020, the market for 5G mobile phones will exceed 150 million units, and more than 10 brands/sub-brands will launch 5G handsets with more than 100 models. This figure is far larger than previously used by market research firms.

Finally, it is worth mentioning that MediaTek is well prepared. MediaTek CEO Cai Lihang recently revealed that MediaTek has invested T$100 billion in the development of 5G chips. Compared with the 4G commercial in China in the early days far behind Qualcomm’s wolf, MediaTek in the 5G year can be said to be a turn-around war.

“High-end” positioning questions

According to reports in taiwan, the Taiwanese industry is very optimistic about the prospects of the MediaTek Dimensity 1000, both at high prices and in bursts. And from what the C114 learned at the launch, the Dimensity 1000 did show several “hard currency”, such as 5G dual carrier aggregation, 5G plus 5G dual card dual wait, integrated Wi-Fi 6 and so on. OPPO, Xiaomi and other mobile phone manufacturers also through the warm field video, expressed the Dimensity 1000 5G dual-mode, dual carrier capacity of appreciation.

However, the Dimensity 1000 sword refers to the high-end, leaving the industry in doubt. According to media analysis, redmi brand general manager Lu Weibing some of the comments, suggesting that the upcoming Release of the Redmi K30 series will carry the Dimensity 1000. The Redmi K30 will be released on December 10th as Xiaomi’s sub-brand, and if the debut Dimensity 1000 is the “high-end” color is a bit of a drawback.

After all, in the 4G era, MediaTek once sold 4G “high-end” chip series of local stalls to Xiaomi’s red rice mobile phone, “tears and count the money.” In the 5G era, mediatek would not do the same thing? After all, it can be seen from the reports that the Dimensity 1000 is currently at a high price of $70 a, not because the cost is so high, but because it is the seller’s market.

Then there is the global market of 5G mobile phones in China in 2020. China Mobile had expected 5G handset prices to fall to between 1,000 and 1,500 yuan by the fourth quarter of 2020. MediaTek next year will launch a second 5G chip for the low-end market, but then the big probability to the buyer’s market, how to define high and low-end, not necessarily as MediaTek would like.

Despite the stunning debut of the Dimensity 1000, MediaTek has not shown the strength of its crushing Qualcomm, Samsung and Huawei Heith 5G technologies, and the support of mobile phone manufacturers is now more restrained. Perhaps MediaTek is too low-key, 5G technology to update iterations, MediaTek needs to further prove itself.

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