MediaTek Cuts 20 Million Cell Phone Chipsets
In recent months, the smartphone market has seen the debut of Redmi and Realme, which have introduced the Snapdragon 7+ Gen2 processor belonging to the Qualcomm 7 Series turnaround. This processor is considered much stronger in all aspects than MediaTek’s Dimensity 8 Series.
Furthermore, the pricing strategy of Redmi and Realme, which dropped the price to 1,999 yuan (approximately 290 USD) upon release, has put pressure on other smartphone chip manufacturers, particularly MediaTek, to make a new marketing strategy.
Industry insiders have revealed that the Snapdragon 7+ Gen2 has directly competed with MediaTek in many cases, leading to companies such as OPPO, Vivo, and Xiaomi stopping many projects where MediaTek is involved. This has resulted in MediaTek cutting more than 40,000 pieces of 4nm Dimensity 8000 and Dimensity 9000 series cell phone chip wafers, equivalent to more than 20 million sets of cell phone chipsets.
Although the strength of the Snapdragon 7+ Gen2 may be a contributing factor, it should not be considered the sole reason for MediaTek’s struggles. Qualcomm Snapdragon’s market reputation is still strong, and many cell phone manufacturers are more active in updating to Snapdragon chips. MediaTek is considered a latecomer or weaker in several aspects.
For example, while the OnePlus Ace 2V is equipped with the former MediaTek flagship Dimensity 9000, the Redmi Note12 Turbo with Snapdragon 7+ Gen2 outperformed the OnePlus Ace 2V in terms of average frame rate and average power consumption.
Redmi and Realme’s aggressive pricing strategy with the Snapdragon 7+ Gen2 processor has disrupted the smartphone market, forcing other companies to rethink their approach. While MediaTek has been affected by this, the company still has the potential to compete and innovate in the market.
It will be interesting to see how the market evolves in the coming months and years and which companies will emerge as leaders in the industry. One thing is definite: the smartphone market is highly competitive, and companies must be able to adapt to stay relevant.
