Xiaomi is planning to have its own mobile processors?
As we all know that the most important component inside a smartphone is the processor. To make their products powerful, manufacturers will equip the cutting-edge processor on their smartphones, some even try to develop their own processors, like Huawei. As Huawei have been constantly putting efforts and money on their self-developed chip, Kirin processors have become the backbone of Huawei smartphones and make it powerful enough to compete with Apple and Samsung. Maybe because of this, Xiaomi company is planing to develop its independent processor.
However, facing such development trend, MediaTek(the chip guru, one of the largest chip-design companies in the world), don’t really seem optimistic about it. Recently, MTK COO said in an interview that the costs of self-developing processor are very high, if there is less than 2-300 million units’ sales, independent processor isn’t profitable business.
MTK COO also emphasized that they wouldn’t worry that smartphone manufacturers like Xiaomi make their own processors at all, because that is no easy business, Samsung and MTK has been fighting for 10 years to reach such achievements, so Xiaomi and other manufacturers are still going to rely on Qualcomm and MTK.
Unlike Xiaomi, the money Huawei spends on development each year equals to total amount of 400 A-share listed companies. Even though, there are still 60%-70% smartphones using Qualcomm and MTK chips, only 30% smartphones use their own independent processors. And the proportion won’t be changed to much next year.
All in all, it is not easy to develop independent processors. In addition to huge spending, there should also be powerful technologies to support and it takes a lot of time. With the rapid development, smartphones now have become fast moving consumer goods, Xiaomi’s independent processor doesn’t seem to have a promising future. What do you say?
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