MediaTek Dimensity 1000L’s Performance Has Reportedly Forced Qualcomm to Reduce Snapdragon 765’s Price
Qualcomm is the largest mobile chip vendor in the industry currently with an estimated market share of 31 percent, followed by MediaTek, which is said to have 21 percent of the market. The mid-range 5G smartphone market will slowly pick up thanks to SoCs like the Dimensity 1000L, with most phone makers choosing the latter due to its affordability and improved performance. To make sure MediaTek’s orders reportedly get effected, Qualcomm is apparently introducing a price for the Snapdragon 765 to provide better competition.
Still No Word if the Snapdragon 765 Price Cut Will Be Passed on as Savings for the Customer
According to analyst Ming-Chi Kuo, to make up for the ‘lower than expected’ demand for its high-end SoCs, Qualcomm is reportedly reducing the price of its Snapdragon 765. Apart from slashing the price of its mid-range chipset, the company is apparently also thinking about bringing down the price of its low-end chips in the second half of 2020. As a result, MediaTek might see the demand for its silicon offerings suffer 3-6 months earlier than it was apparently expecting.
Kuo claims that Qualcomm has reduced the price of Snapdragon 765 by nearly 30 percent to roughly $40, which makes it more affordable than MediaTek’s Dimensity 1000L which costs around $60 to $70. Similarly, the demand for the low-end Dimensity 800 which will cost around $40 to $45 when it’s released in May will likely be impacted too.
Right now, the Taiwanese chipmaker has supposedly received orders for around 20 to 25 million chips from companies such as OPPO, Vivo, and Xiaomi. However, from here on out, the orders might go to Qualcomm instead thanks to this price. Technically, the Dimensity 1000L is better than Snapdragon 765, but the real-world performance only differs during gaming sessions. Thus, mobile OEMs will likely not think twice before shifting orders to Qualcomm after the price cut.
Sure, MediaTek can reduce the price of its own chips too, but that will eat away at its margins. Qualcomm, on the other hand, can likely afford to reduce the price of its mid-tier and low-end chips, while making money from the more premium Snapdragon 865, which has a price of around $120 to $130. Clearly, the MediaTek Dimensity 1000L has no chance of gaining an upper hand against the Snapdragon 865.
It’s not confirmed what MediaTek’s next step would be, but a price cut for the Dimensity 1000L looks to be the only viable solution at hand.
Source: IT Home