With the outbreak of the new coronavirus, there has been a decline in the demand for many electronic products. This also affects the demand for smartphones and its components such as processors. With the low demand, there is an increasing competition between manufacturers for the available orders. According to analysts, the price competition between Qualcomm and MediaTek (two 5G processor suppliers), will heat up in the second quarter of this year.
Qualcomm and MediaTek are currently two of the world’s few manufacturers with 5G processor supply capabilities. Unlike Huawei and Samsung, Qualcomm and MediaTek do not develop and manufacture mobile phones. Processors are their main business, and their customers are major smartphone manufacturers.
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It is worth noting that the impending fierce competition this year will force chip makers to reduce the price of 5G processors. Well, this competition will be a good thing for end-users. Many people are already looking forward to entry-level 5G phones. However, this will not be possible if the prices of 5G chips are still high. We already have some mid-range 5G chips which make it possible to have 5G phones for less than $300. However, it is most likely that the prices of 5G phones will be further reduced.