Qualcomm TD-LTE chip high-value royalties scare China mobile phone manufacturers

Qualcomm launched the integrated chip Snapdragon 401 for China's TD-LTE market yesterday (10). However, foreign-funded legal entities such as JP Morgan Chase Securities believe that Snapdragon 401 is still required because China's mobile phone manufacturers still use Qualcomm TD-LTE chips to pay high royalties. Only the international mobile phone manufacturers can be eaten, and the Chinese business opportunities will still be reserved for the MediaTek.

Guo Yanlin, head of research at JP Morgan Chase Securities in Taiwan, pointed out that only Qualcomm has China's TD-LTE integrated chip supporting 5 models. The launch of Snapdragon 401 is actually within the expected range, but the point is that there is currently no Chinese mobile phone. Vendors and Qualcomm signed a contract for TD-LTE because of the huge amount of premiums required to pay Qualcomm.

Qualcomm TD-LTE chip high-value royalties scare China mobile phone manufacturers

Guo Yanlin believes that as long as the issue of royalties is not resolved, even if Qualcomm launches chips with better performance, it will only be adopted by international mobile phone manufacturers in the end. The interest of Chinese mobile phone manufacturers should not be high, and in China, the market that relies on local mobile phone manufacturers to have business opportunities. Without the participation of Chinese mobile phone manufacturers, it is unlikely that Qualcomm will play too much.

Guo Yanlin pointed out that MediaTek did not develop TD-LTE integrated chips before, but the technology is not mature enough. At the earliest, it will not be able to launch products with Qualcomm in June or July next year. Before this, MediaTek's share price Can only rely on the newly launched 8 core theme, but consider that Chinese mobile phone manufacturers should first wait and see Qualcomm Snapdragon 401 effect, MediaTek this empty window period should have little impact on the stock price.

On the whole, Guo Yanlin believes that there are three key factors affecting China's TD-LTE penetration rate: 1. When will MediaTek launch a competitive TD-LTE chip; Second, China Mobile's progress in TD-LTE infrastructure will be promoted; Third, how mobile phone manufacturers set the price of TD-LTE mobile phones.

However, Yuan Jiatou's semiconductor analyst Zhang Jiaxuan pointed out that the stock price is the reaction to the future theme. Since MediaTek's short-term share price has risen to more than 400 yuan due to 8 core products, it will enter the consolidation stage.

Zheng Zhaogang, a Hong Kong-based CLSA analyst, pointed out that MediaTek will rely on the MT6590 with only modem solution in the first half of next year. After the launch of the first integrated chip in the third quarter, it will be able to start rushing to China and international mobile phone manufacturers TD. - Market share of LTE handsets.

According to Zheng Zhaogang's estimate, MediaTek's 2016 TD-LTE chip shipments are expected to reach 50 million sets. If sensitivity analysis is performed, each shipment will have 1 million sets of TD-LTE chips, and 2014 and 2015 will receive Lido will grow by 1%.

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