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Qualcomm to sign USD 12 Billion deal with Vivo, Xiaomi and OPPO

Global LTE Consumer Devices,

United StatesThe US president Trump had an official visit to china. During the visit to the country, deals between U.S and Chinese firms worth USD250 billion were expected to be signed. One of the such deal was signed as non-binding Memorandum of Understanding between Qualcomm and Chinese smartphone marker Vivo, OPPO and Xiaomi.  The MOU were signed at a ceremony at the great hall in Beijing. Qualcomm CEO was part of United States president’s department of commerce trade delegation to china that also consist of leading American companies. CEO’s of OPPO, Vivo and Xiaomi also attended the ceremony.  

The deal is worth USD12 billion, where the San Diego-based chipmaker will sell its component to three companies over the time period on three years. All three-smartphone maker use Taiwan’s MediaTek processor but bulk of their products are made with Qualcomm’s mobile platform. Qualcomm’s half of the revenue is generated from China, so the deal is likely to favour both the countries.

Earlier there was a news that Qualcomm could be acquired by rival Broadcom for USD130 Billion. Broadcom was itself acquired in 2015 for over USD36 Billion by Avago and Qualcomm has been interested in acquisition of NXP semi-conductor. Broadcom Ltd., a leading semiconductor devices manufacturer announced to acquire outstanding shares of Qualcomm for per share USD70 in cash and stock. The company thinks it will be a heathy acquisition for both the firm for the consumer and shareholder as their company value and goal are the same. 

Qualcomm is in legal affair with Apple over LTE-related technologies and the company has official filed a law suit against Apple and confronts that the company has broken is agreement on software and has associated with Intel for making their own LTE modems, which were expected to be used for iPhones. Apple has claimed that Qualcomm follows anti-competitive practices and charges heavy pay-off in brand of smart phone that use LTE modems made by other competitors.

TechSci Research depicts recently released snapdragon 636 chipset, and The SoC that was built on the success path of the snapdragon 625 and 630 that were introduces before it, while mid-range snapdragon 660 heavyweight, which was used in OPPO’s recent R11 and R11’s flagship was a success. Xiaomi’s upcoming Redmi Note 5 is expected to introduce new snapdragon 636, with such partnerships with Chinese smart phone manufactures over the year will not jus positively affect the market but will also help in maintaining close relation between both the countries.

According to the recently published report by TechSci Research, “GlobalLTE Consumer Devices Marke, Competition Forecast & Opportunities, 2010-2020”, global market for LTE consumer devices projected to grow at a CAGR of more than 26% during 2015 - 2020. Rising adoption of LTE technology in emerging economies, increasing number of new LTE enabled registered devices, such as cameras and other wearable devices, mounting Machine-to-Machine connections, Internet of Things (IoT) and declining global average selling prices of LTE devices is projected to propel growth in global LTE consumer devices market through 2020. Samsung and Apple are expected to continue their market domination; however, their respective market shares are expected to decline over the course of next five years.

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