Current entry-level smartphone processors may disappear as demand weakens

Current entry-level smartphone processors may disappear as demand weakens
In recent times, the demand for entry-level smartphone processors has begun to decline, with a number of companies aiming to boost profits by focusing on more expensive devices that can provide higher profit margins, something that may eventually lead to the demise of the entry-level processor.

According to a new report, in light of the recent changes in demand, the likes of Qualcomm and MediaTek are now increasing their focus on more powerful AI chips that can attract the attention of manufacturers and, ultimately, justify higher pricing. In addition to this, Qualcomm is also attempting to bridge the gap between premium and mid-range smartphones, something that will allow brands to create new devices which are positioned just below flagship models – the Snapdragon 710 processor is a clear example of this strategy. MediaTek, on the other hand, has decreased its focus on high-end performance processors due to a lack of growth and has instead switched its resources over to the development of new mid-range processors that have shown significant progress in recent times and are expected to lead to strong sales performance during Q2 2018.

Ultimately, the lack of focus on entry-level processors doesn’t mean low-cost smartphones are about to disappear, it simply means that the standard of performance that is expected from them is continuing to rise, something that was reflected very clearly in a recent leak. After all, until now, Qualcomm’s Snapdragon 200 series has focused on truly budget smartphones but going forward it appears the more powerful Snapdragon 400 series will be taking over this role thanks to the upcoming Snapdragon 429 and 439 which are designed to work with Android Go devices.

Overall, aside from the adjustments at the lower end of the smartphone market, the way companies cater towards more premium devices is expected to remain largely unchanged. However, as demand for more powerful processors continues to grow, the likes of Qualcomm may eventually choose to create an even more premium line in order to cater for flagship requirements, although considering the recently-created Snapdragon 700 series, this seems unlikely at the moment.

source: DigiTimes

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4 Comments

1. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Well, a smartphone with a quad-core 1.3Ghz Cortex-A7 or even A53 cluster, ~500 Mhz RAM Module and extremely low CPU cache (32KB L1, 512KB L2) just don't cut it anymore. And lets face it; low-end chipsets haven't seen a drastic change in years! As a matter of fact; I often see MT6582 chip in smartphones; a chip introduced way back in 2013. I personally think that it's about their outdated nature that deter most users from buying one. Oh well, G'Day!

3. sgodsell

Posts: 7383; Member since: Mar 16, 2013

Every year new Qualcomm SoCs, Samsung Exynos SoCs, MediaTek, and many others come out with cheaper SoCs, or SoCs with more computing power. For instance low end chips today in 2018 are like SD 450 these days. However chips like that offer a lot of computing power at very reasonable prices. Look at devices similar to the Moto G6, that can be had for less than $250. It has an octa core 64 bit 1.8 GHz SoC, that can work with 933 MHz ram. The Moto G has dual cameras, supports 4k video, bokeh, has a full HD+ (2160x1080) display. It certainly makes you wonder why any person would want to buy an iPhone 8 for $700, especially when it offers a lot less.

2. Nimbus

Posts: 442; Member since: Apr 02, 2018

Joshua Swingle there was leaks on SD680 specs as a successor to SD630/636 but i don't know why didn't any author of PA including you has covered article news on this thing.Looking forward I hope there is a sub version of SD710 or real succesor to SD636 specs with A55-75 cortex as 3rd generation Kryo cpu on 10nm LPP with 600 series adreno gpu for replacing the sd630/636 chips of midrange smartphones next year.SD710 will be costly,less use as SD660,652,650 i feel like except of only availability in nokia devices.SD600 series will replace SD400 as midrange chips while SD700 series will cover on upper midrange chips as low tier flagship phones and SD400 chips will replace SD200 series for budget phones while SD200 chips series will disappear for good as all low range of smartphones do need powerful soc.Hope Qualcomm start adding NPU too on their midrange chips like their rival Huawei did it on kirin chips than skimping on it to save cost.

4. PryvateiDz

Posts: 443; Member since: Jul 31, 2011

"Qualcomm is also attempting to bridge the gap between premium and mid-range smartphones, something that will allow brands to create new devices which are positioned just below flagship models – the Snapdragon 710 processor is a clear example of this strategy."

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