Trade Resources Industry Views Smartphone Vendors to Adopt in-House-Developed AP

Smartphone Vendors to Adopt in-House-Developed AP

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Tags: Smartphone, IC

Huawei Technologies and Xiaomi Technology are expected to increase adoption of in-house-developed ARM-architecture application processors (APs) in their own-brand smartphones. Huawei's subsidiary IC designer HiSilicon Technologies has improved its technological capability and Xiaomi has obtained licenses from China-based Leadcore Technology to develop own-use APs, according to Taiwan-based IC design houses.

Xiaomi and Huawei's strategy is expected to directly impact AP providers such as MediaTek and Qualcomm. Within the global top-5 smartphone vendors, Apple, Samsung, Huawei, Xiaomi and LG, which together contribute over 60% of worldwide shipments, four of them have already adopted in-house developed APs or have been aggressively increasing their adoption, which could seriously damage independent ARM-AP suppliers as well as x86-based solution supplier Intel.

Although Intel has gained support from Asustek Computer and some China-based smartphone vendors by offering subsidies, Intel's mobile business continues to suffer losses. To improve its status, Intel has invested in China-based Spreadtrum and cooperated with Rockchip, looking to expand its reach via their channels.

Source: http://www.digitimes.com/news/a20150807PD206.html
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Huawei, Xiaomi to Hike Adoption of in-House-Developed Smartphone APs