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article imageTaiwan chip designer produces low-priced smartphone

By Amanda Byas     Nov 16, 2014 in Technology
Smartphone chips manufactured by Taiwan’s MediaTek Inc. were mostly looked over by the big phone brands throughout the past decade.
Fast forwarding to the current smartphone decade, the smartphone market is becoming saturated with Chinese smartphone makers. Chinese companies are trying to take their own slice of the pie from the top sellers Samsung and Apple with their very own cheap handsets. This is igniting the boom in the affordable smartphones at MediaTek, now the $23 billion go-to designer for affordable smartphone chips.
MediaTek has pioneered low-cost chips along with recommendations on hardware such as speakers and lenses. This smartphone chip approach will save phone makers a decent amount of money. They will no longer have to worry about testing and finding parts to match the smartphone chips that they buy. In result, will allow the phone makers to cut prices, which will easily take 10 percentage of points from Samsung in the next few years.
Thanks to MediaTek’s chip, the average price of a smartphone should decrease from $314 down to $267 by 2018. Which is compared to the iPhone 6 Plus that is being sold for $749 in the United States.
MediaTek's smartphone chip strategy has helped their company's market value rise 125 percent within the last three years alone. Their strategy involved with more than 200 Chinese component makers that helped assemble the final product.
MediaTek - System on a Chip Processors | FindTheBest
What do you think about smartphones becoming more affordable? Is it a good sign or a bad sign?
More about Taiwanese, Smartphone, Apple, Samsung, iphone 6
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