Judging by the analysts’ reports, numbers of Chinese smartphone vendors are set to switch from Qualcomm’s (QCOM, Financial) MSM8939 processor to MediaTek’s MT6752 processor in the smartphones under way. The USB analysts went on the report claiming that the Qualcomm’s design is inferior to MediaTek’s. There is much more to know about the switch over though:
Comparing the key features of both chips
Read on below to glance through a comparative study between the key specifications of both chips to have a better knowledge of their capabilities:
To sum up, The MediaTek chip has eight cores that can run at 1.7GHz antagonising with Qualcomm’s awful configuration that runs half the cores on 1.7 GHz and other half at 1.0 GHz.
MediaTek on a higher pedestal
There was a comparative study run on the Adreno 405 in the Snapdragon 615 with the Mali-T760 in the MediaTek chip. It turned out, Adreno405 and Mali-T760 commensurately matched in 2D graphics performance but the Mali-T760 considerably outperformed the Adreno 405 in 3D graphics performance while in CPU performance, the MediaTek chip left past the Snapdragon 615.
Reasons why companies are switching to Mediatek from Snapdragon
Media Tek has a less expensive processor than the Qualcomm equivalent which somewhat bridged the technological gap. The reason is, Mediatek are bundling modems and wireless technologies into the units. According to the source, adding up to the Xperia E4, which is based around a quad-core, 1.3 GHz Mediatek processor, Foxconn and Compal are building 4G LTE empowered smartphones based around a mid-range, 64-bit Mediatek processor thereby boosting the sales of mid-range smartphones and enabling them to come in pocket-friendly prices.
How the analysts are expecting MediaTek to perform:
The Taiwan-based mobile chip designer Mediatek is all set to gain market share at Qualcomm’s expense this year, as predicted by UBS. UBS is really hopeful about Mediatek’s stock to eye a new price target of 560 new Taiwan dollars. To add to the brighter hopes, shares of Mediatek rose 1.5% trading at NT$487 recently.
At its earnings call last month, Qualcomm cut its earnings forecast saying it struggled with competition in China and strongly implied it lost Samsung Electronics' (005930.KS/SSNLF) flagship new Galaxy S6 business, because of overheating issues with its high-end snapdragon models.
UBS analysts Eric Chen, Samson Hung and Sunny Lin anticipates that MediaTek will acquire 46% share of China’s 4G smartphone market this year, leaving past 30% in 2014. The share gain will pull in from both the low and high end as clients are pretty likely to switch from Qualcomm’s Spapdragon 800 to MediaTek’s MT6796. That will prompt MediaTek’s revenue rise by 20% this year, according to the bank. In view of the higher-end integrated circuits deliver high margins, UBS now hopes for MediaTek’s earnings to grow by 21% this year.
Our take
MediaTek, by every means, is in a winning situation turning the table from Qualcomm. That may largely and adversely affect the Qualcomm sales but MediaTek will definitely see their efforts paying off in the next fiscal year to come.
