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China’s LTE Market, A Challenge for the Chip Manufacturers

By Linx Wang
Published: Jul 16,2014

When talking about China, there are always meant to be huge numbers, so far, there are 10 million LTE users and 18.9 million devices delivered in China, which is just the beginning. According to the research facility, until 2019, there will be more than 700 million LTE users in China, will be the world largest 4G network country, it is a big market opportunity, meanwhile a big challenge.

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With large number of users, the demand for the device would raise rapidly. To satisfy the demand, chip providers such as Qualcomm and MediaTek released products support LTE network. In previous article we had discussed about Qualcomm’s supporting for LTE, now we are going to talk about MediaTek.

MediaTek is one of the largest chip-design companies in the world. Unlike Qualcomm, it mostly provids mid or mid-low range mobile chips. In Q1 of 2014, the sales of smartphone CPU increase 25 percent to $4.7 billion USD, the share of top 3 are Qualcomm 56 percent, Apple 16 percent and MediaTek 13 percent.

Most user don't need high-end products, instead, they prefer mid or mid-low range products (so called high CP value smartphone). For this reason, a lot of smartphone manufacturers like ASUS, HUAWEI, ZTE...etc released series of mid-range phones. That is why these kind of smart phones are better selling in China.

But the market may start to have a change, MediaTek just released its new 8 core LTE supported CPU MT6595 yesterday, hope this could be the start to challenge high-end market. Except MT6595, MediaTek also released another 8 core LTE CPU with 64bit supported-MT6795, it can support 4K Video playback. They predict there will be 17 million sets delivered this year.

With all this, consumer can have more choice and market will be more diversity, whether high-end or low-end, all this are good for consumers.

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