According to Taiwan’s “Economic Daily”, the recovery of the mobile phone market is not as good as expected, and the industry has heard that in order to stimulate customers’ willingness to purchase goods and speed up the clearance of inventory, Qualcomm recently launched a price war to lock in the low-end 5G mobile phone chips, and the price reduction rate is as high as 10% to 20%. It is expected that Qualcomm’s price reduction measures will continue to the fourth quarter. If the speed of inventory clearance is not as fast as expected, it is not ruled out that a new wave of price cuts will be intensified.
Qualcomm usually starts a price war after the accumulation of old products for more than a year. This time, it is different from the past in that it started to cut prices less than half a year after the product was launched. In addition new products will come out In addition, another major reason is that the downturn in the consumer market will continue at least until the end of the year.
According to industry analysis, Qualcomm’s large-scale price reduction highlights the sluggish dilemma of the mid-to-low-end 5G mobile phone market.
The industry pointed out that Qualcomm has always been in a leading position in the non-Apple mid-to-high-end mobile phone market, so this price cut focuses on the mid-to-low-end segment, hoping to accelerate inventory clearance to meet the new generation of Snapdragon series mobile phone chips that will be launched in mid-to-late October.
As for whether MediaTek will be affected by Qualcomm’s price war, the industry believes that MediaTek’s mobile phone chip shipments have jumped to the top in the world and that MediaTek’s new chips after the second quarter of this year will be transferred to the mid-to-high-end market, so it will be affected. The degree will not be as severe as in the past.
According to analysis, this wave of downturn in the consumer market may continue until the fourth quarter of this year, and it will have a chance to fully improve next year. It is almost certain that the operating performance of MediaTek and Qualcomm this year will be significantly lower than last year’s record-high level, and it will not be until 2024 at the earliest. It is expected to warm up again.
