Xiaomi Rumored To Be Working On Its Own Custom Processors – Custom Chipsets Was Already In Process
Xiaomi was rumored to be working on its own custom SoCs, but it looks like the latest rumor states that the rising Chinese smartphone manufacturer has decided that it also wants to start working on its custom mobile processors.
Xiaomi Rumored To Be In Talks With Qualcomm For Processor Licensing Agreements – MediaTek Not Optimistic About Companies Making Their Own Processors
According to the latest source, Xiaomi is in talks with Qualcomm to start mass producing its own custom mobile processors. For the longest time, companies like Apple have been designing their own cores, which would obviously have compelled Xiaomi to get into the race of developing its own chips. Huawei has been relying on its Kirin SoC lineup for all of its smartphones and tablets and they have been the backbone for the company’s immediate growth in a very competitive industry.
Xiaomi has also grown quite well, but for it to grow even further, the company’s executives will have to make a few drastic changes. However, MediaTek, Qualcomm’s biggest rival in the mobile chipset industry is of the opposite opinion. According to the company, the costs of developing processors are extremely high, and if a company is selling less than 200-300 million units in a period of 12 months, then developing independent processors is not a profitable business. We are not sure why MediaTek would say such a thing, particularly when so many other firms like ZTE and Lenovo have also intended to start mass production of their own processors.
Perhaps the Taiwanese company said this because it does not like the idea that so many potential clients might not require the company to start producing mobile chipsets, which will obviously force MediaTek to lose a substantial market share in the near future. However, if what MediaTek says is true, then it looks like Xiaomi is going to keep its production at a much lower level and continue to rely on Qualcomm and MediaTek for mobile chipsets. Once the company starts to see sufficient traction in smartphone and tablet sales, then Xiaomi will slowly start to rely less on these firms.
For now, it definitely is not going to be easy for Xiaomi, seeing as how the smartphone industry is not getting any less competitive. We will continue to update you guys on the latest but do you guys think that Xiaomi has a much better chance of growing by developing its own processors? Let us know your thoughts.