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In recent reports, it has been revealed that the first wave of 5G development is taking shape, with Qualcomm leading the charge. As one of the key players in the mobile technology space, Qualcomm is leveraging the growing momentum of 5G-enabled smartphones and collaborating closely with Chinese manufacturers such as OPPO, vivo, Xiaomi, and Lenovo to launch their "5G pilot plans." This initiative aims to help these companies catch up with industry giants like Samsung, while Apple is no longer just a distant competitor.
Despite being close to the Chinese Lunar New Year, Qualcomm has remained highly active in the 5G space. At a recent tech summit, the company invited several top Chinese phone manufacturers to announce their latest strategies for "5G piloting." The plan involves major brands like Lenovo, Xiaomi, OPPO, and vivo, who will receive support from Qualcomm in developing high-end, globally competitive 5G devices. These companies are expected to roll out premium 5G models as early as 2019.
Qualcomm’s President, Christiano Amon, emphasized that China is set to become the fastest-growing global 5G market. With its rapid growth and massive consumer base, the country will play a crucial role in shaping the future of 5G. This year, Qualcomm will also provide smartphone manufacturers with new 5G air interface reference designs, further solidifying its partnerships with Chinese companies.
Chinese manufacturers have become increasingly important to Qualcomm, not only because of China's status as the world's largest smartphone market but also due to the ongoing acquisition of NXP by Qualcomm. The success of this deal could serve as a counterbalance against Broadcom’s potential hostile takeover. Companies like Lenovo, OPPO, vivo, Xiaomi, ZTE, and others have publicly supported Qualcomm, highlighting the importance of stability in the supply chain.
OPPO and vivo, in particular, have expressed concerns about the uncertainty that would come with a Broadcom acquisition. They believe it could negatively impact the industry and consumers. For many Chinese manufacturers, Qualcomm’s strong patent portfolio and technological leadership offer a clear path into the 5G era, bringing them closer than ever to global leaders like Apple and Samsung.
In the 4G era, Qualcomm capitalized on the smartphone boom, and now it's striving to maintain that dominance in the 5G landscape. Through strategic collaborations with Chinese manufacturers, both sides are optimistic about the future of 5G. At the summit, Qualcomm signed memorandums of understanding (MoUs) with OPPO, vivo, Xiaomi, and Lenovo, committing to purchase RF front-end components worth at least $2 billion over three years.
RF front-end technology is critical for delivering an optimal user experience. With Qualcomm’s comprehensive modem-to-antenna solutions, Chinese OEMs can design devices that support a wider range of frequencies, enhance network capacity, and improve energy efficiency—key factors in handling the complexity of 5G networks.
The “5G Pilot Program†marks a significant step for Qualcomm, showcasing its ability to lead in the industry ecosystem. According to Counterpoint Research, seven of the top 10 3G/4G smartphone manufacturers in 2017 were Chinese, all with deep ties to Qualcomm.
Last year, Wantee shipped 83 million smartphones, and its collaboration with Qualcomm on 5G test devices has already begun. An insider at Wantee said, “We’re one of the few in China that have developed 5G test machines for Qualcomm and China Mobile, and I believe we’ll be among the fastest to adopt 5G.â€
Beyond Wantee, other Chinese manufacturers have also engaged in deep 5G cooperation with Qualcomm. On the path to identifying key partners, they are all aligning themselves with Qualcomm, eager for the 5G revolution.
This partnership has brought substantial revenue to Qualcomm, with its Chinese OEM sales growing at a compound annual rate of 17%. As 5G becomes more widespread, Qualcomm is expected to gain even more Chinese partners in the coming years.
Looking ahead, while Chinese manufacturers have grown significantly in the 4G era, the 5G landscape presents even greater challenges. However, with Qualcomm’s technological support, they are well-positioned to compete on the global stage. In the next two years, we may see more prominent voices from Chinese manufacturers, making the dream of catching up with Samsung and Apple a reality.