MediaTek wants to power your next budget phone

Jan 27, 2015 07:59 GMT  ·  By

MediaTek was the first of chip manufacturers to introduce an octa-core processor into the wild, a move for which it got scoffed at.

Qualcomm was heard commenting that cores in chips need to get better not increase in number; but not long afterwards, the chip giant was seen choking on its words, when the Snapdragon 615 and Snapdragon 810 were announced.

MediaTek is expanding outside of Asia

In the meanwhile, MediaTek has been trying to branch out and build a name for itself outside the confines of Asia, where it is known for its low-end and mid-range smartphones.

With this in mind, the company has set up an office in San Diego and taken up a partnership with T-Mobile, as reported by CNET.

The carrier is the only one certifying its products in the country and selling devices such as the Alcatel OneTouch Fire, Alcatel OneTouch Evolve and Alcatel OneTouch Evolve 2 which take advantage of MediaTek.

MediaTek is trying to go after Qualcomm’s market share, but it has a long way to go until it can close the gap between them.

However, MediaTek sees a big opportunity with the US market. Today, the American market is dominated by Apple’s iPhones and Samsung’s Qualcomm-based handsets.

But as US carriers move away from subsidies towards monthly installment payments, which reveal the actual high-cost of the phone, MediaTek believes customers will be prompted to look for much cheaper options.

And that’s where they come in. However, the Taiwanese chip maker has a lot of work to do in order to gain recognition and build a name for itself on the American market, which is not an easy thing to achieve, given Qualcomm’s sturdy dominion over the market.

A Mediatek-Intel deal might be in the works?

On the other hand, Intel has been rumored to be interested in purchasing MediaTek, a publicly traded company valued at $28 / €25 billion on the Taiwan stock exchange.

The acquisition might help both Intel and MediaTek elbow their way into the US market, which has been taken with Qualcomm for way too long.

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MediaTek goes after Qualcomm in the US
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