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Qualcomm and Xiaomi Sign a Deal

December 3, 2015 By Troy Rubenson Leave a Comment

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"companies strike a deal"

Qualcomm and Xiaomi are signing a deal that will make them even stronger on the market

STATES CHRONICLE – Maybe you’ve only heard of Samsung and Apple but there are others are coming strong from behind and in China Qualcomm and Xiaomi sign a deal.

China is the largest country in the world in terms of population and it also represents the largest consumer market on the entire globe. And while Apple and Samsung are the most popular smartphone producers in the world, they are closely followed, and even outrun in China, by Xiaomi, a young startup which is now the 4th largest smartphone maker in the world and the second option on the Chinese market after Huawei.

On the other hand, the smartphone market is going through, let’s say, a rough time. This also has a negative influence over the companies that manufacture the processors used for powering the smartphone devices.

This is why Qualcomm, one of the largest companies, which until 2013 had 95% of the mobile market is now declining and has reached 51% last year. The main reason for the dramatic drop is the emergence in the past two years of startup chipmakers such as MediaTek, which represent the competition.

In the past, Qualcomm was the best and only option for high-quality processors for smartphones. Now, the options are incredibly various. Here are some of the main competitors on the market. MediaTek is the biggest competitor with their latest Helio X10 SoC (System-on-Chip). There is also Intel, which after a while of keeping a ‘low-profile’ on the mobile market, is now emerging again.

Samsung also produces mobile processors, but they are mainly used for their own smartphones, or at least for some of them. All of the others were powered by Qualcomm. However, this year, Samsung turned from Qualcomm to Exynos. And let’s not forget about Huawei which produces the HiSilicon Kirin 950 which appears to be the most powerful smartphone processor so far.

Since the market is filling up with competitors for both smartphone makers and chip makers, Xiaomi and Qualcomm have made the smart decision of teaming up. They are both very well appreciated, especially in China. This is why, it is expected that their alliance will be a very powerful one that could easily overthrow competitors and bring them to the top of the smartphone/mobile processor market.

Image source: www.bing.com

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Filed Under: Business

About Troy Rubenson

Troy had initially wished to become a Wall Street which and it was this passion that pushed him towards learning more and more about investments, capital markets and financial gain. He is currently The States Chronicle’s foremost business correspondent.

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