As we have reported earlier that Qualcomm has been having problems producing enough of its latest flagship 835 SoC. This has been further exacerbated by the fact that the initial production batch was bought up mostly by Samsung for its Galaxy S8 series of handsets. And now as other manufacturers like Xiaomi, SONY, HTC et al are supposed to launch their own smartphones bearing Qualcomm’s latest and greatest, it has left other players like ASUS in a lurch. This is a problem since the only other major supplier of SoC’s in the mobile market is MediaTek which has been having trouble with attracting clientèle of late.
Such a development is especially telling for ASUS who would have to wait for a June possibly July window for enough supplies of the Snapdragon 835 to put out their flagship for this year. This is not ideal as it would put them too close to the launch of the next-generation of Apple’s iPhone. Apple commands the premium segment of the smartphone market and could have a debilitating affect on the former’s sales and associated revenues. This is a problem since Intel has vacated the mobile market leaving the company dependent on Qualcomm for a bulk of its needs.
Furthermore since Samsung got into an agreement with Qualcomm to not try to market the Exynos series of SoC’s to any other mobile OEM it leaves the Taiwanese electronics giant with only one option, MediaTek. This is according to a report in Digitimes and this is further reinforced with the fact that ASUS has direct ties with MediaTek’s fabrication partner Taiwan Semiconductor Manufacturing Company (TSMC) in the form of TSMC ex-CEO Rick Tsai, who is currently serving MediaTek as its co-CEO.
This also works out in the favour of MediaTek. The company has been ailing to strike lucrative deals in the high-end segment which has lead to Qualcomm dominating most of the mobile-space.
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