Following Qualcomm's first announcement of the layoff plan, MediaTek also urgently lowered the target of smart phone chip shipments in 2015, and the global mobile phone chip market is entering the winter. However, compared to the cautious behavior of domestic and foreign IC design companies, brand mobile phone operators have a bold move.

Apple, Samsung Electronics and Huawei are still accelerating the next generation of mobile phone chips to 14/16 nanometers of the most advanced process technology, and Xiaomi has also signed a full range of CPU IP licensing plans with ARM (ARM). Interested in playing cross-border.

In the face of the influx of IC design companies and the wealthy brand mobile phone manufacturers, under the trend of lower and lower return on investment in mobile phone chips, they have taken a completely contradictory approach, fearing that they will subvert the next generation of global mobile phone chip industry.

Although it is possible to limit the research and development budget of the brand mobile phone factory to a much larger extent than that of the IC design company, the explanation is why the IC design company has set aside the process of shrinking clothes and dieting, and the brand mobile phone factory has taken a big step forward. But in fact, the global first-line brand mobile phone manufacturers have completely dominated the highest-end smart phone chip market, and only the flagship products still enjoy some excess profits in the terminal market.

Brand mobile phone operators who only focus on the battlefield of the highest-end smart phone chip market can certainly spend a lot of money and increase capital expenditures. They can call out the 14/16 nanometer process technology in threes and fives. The smart phone products that the factory is trying to operate are inevitably affected by the advertising effects of some higher-end products.

In contrast, Qualcomm, MediaTek and Spreadtrum have been squeezed to the middle-to-high-end and entry-level smart phone market with only normal profits and even meager profits. In all downstream brand mobile phone factories and design OEMs, all have taken It only requires cheaper. I don't believe that it is the cheapest chip purchase attitude. The gross profit margin of each mobile phone chip has fallen below 50%. After deducting the company's operating expenses, the net profit of each mobile phone chip is less than 20%.

No matter how much research and development costs and personnel costs are invested in a mobile phone chip, only a net profit of 1-2 dollars can be exchanged in the end, and the time may not last for one year, and then there will be more expenses, even more than previously earned. The money to develop newer chip solutions and adopt newer process technologies will give a sense of crisis to any IC design company.

However, for a brand-name mobile phone factory with a flagship-class smart phone that can make more than $100 profit, the mobile phone can make money is king, let Apple, Samsung, Huawei, and even Xiaomi still enjoy it, and continue to invest more R&D resources. And capital expenditures in the so-called semiconductor industry chain, trying to complete the goal of upstream virtual (Vitrual) vertical integration.

Although the short-term international brand mobile phone manufacturers and IC design companies have taken the first step to distinguish the Chuhe Hanjie market segment of their own mobile phone chip solutions, and even began to recognize that the semiconductor industry is to play a business model, the two sides are completely Different adjustments in capital expenditure actions may of course help fuel the global mobile phone chip industry's territory.

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