Guo Mingyu, an analyst at Tianfeng International, which focuses on supply chain information, said the profits from MediaTek’s 5G chip orders could be significantly affected by Qualcomm’s price cuts for chips. Guo believes that the demand for high-end 5G mobile phone replacement is lower than Android manufacturers expected. “To boost 5G chip shipments and drive user demand, Qualcomm has significantly reduced the price of its 5G chip Qualcomm SnapDragon 765 by about $25-30 to $40, significantly lower than MediaTek’s 5G chip Dimensity 1000 ($60-$70),” he said. “The cost estimate for the latter is $45-$50. He believes Qualcomm’s current price cuts have had an impact on MediaTek’s chip orders.
Tianfeng International predicts that MediaTek’s main 5G chip customers, including OPPO, vivo and Xiaomi, will move about 20 million to 25 million chip orders from MediaTek to Qualcomm, and the move will begin as soon as February.
At the same time, Guo Believes that the price reduction of the SnapDragon 765 chip will have a greater negative impact on MediaTek’s 5G chip, the Tianqi 800, which will be shipped in large quantities in late May, because the Price of the Tianqi 800 is $40 to $45 and costs $30 to $35, both of which are in the same gear. As a result, he said: “MediaTek will face greater cost pressures and profits will fall short of market expectations.” “
However, Mr Guo said qualcomm’s SnapSnapdragon 865 chip-mounted X55 5G baseband’s 5G solution would remain at $120-$130 because of performance benefits, remaining the main option for Android phone makers.