Has MediaTek divorced Xiaomi? Latest rumors claim so

Has MediaTek divorced Xiaomi? Latest rumors claim so
One of the fastest-growing smartphone manufacturers, China-based Xiaomi, already sees itself as the global leader on the market in 5 to 10 years' time. Without the shadow of a doubt, surpassing Apple and Samsung will be, by no means, an easy task, but the maker could have found just the right formula to do so - well-endowed devices that pack some respectable hardware insides and come with a relatively-affordable price tag. All is good, but will the formula still work if Xiaomi loses one of its larger hardware suppliers? As far as the rumor mill is concerned, we might find out relatively soon. 

Recent rumors have it that MediaTek and Xiaomi might no longer work together, as the chipset maker has allegedly decided to renounce the collaboration agreements it had with the Apple of China and therefore cease to provide the phone maker with silicon chips for its lower-tier devices. The exact reason for this purported divorce are unclear at the moment. MediaTek has declined to comment on the matter, and Xiaomi's also kept mum on this purported major "divorce".

If this turns out to be true, there might be some major trouble in Xiaomi's paradise - the departure of MediaTek from its suppliers list could lead to some serious problems and hurt the manufacturing process of a significant portion of its mid-range and entry-level portfolio. If MediaTek and Xiaomi have indeed waved goodbye to each other, another notable chip maker, Qualcomm, might be a winner.

Xiaomi is already partnering with other chipset manufacturers, such as Nvidia (for the MiPad), the little-known Xiaolong (responsible for the chip inside the Mi 2A, and Leadcore, another not-so-popular silicon maker.

source: CNBeta (translated) via GSMDome

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16 Comments

1. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

XiaoMi should shooting itself on foot if this is true, without mediatek, your Redmi won't stack up against lumia 520. And Nokia last year would have eat your China pie. Huawei Lenovo Oppo Asus and heck HTC are laughing now

2. luis.d

Posts: 354; Member since: Dec 04, 2013

Xiaomi is already working with Leadcore, so it must have at least some part of its future chip supply figured out -http://www.phonearena.com/news/Xiaomi-working-on-65-smartphone-with-720p-display-and-1GB-of-RAM_id62770

7. Suo.Eno

Posts: 556; Member since: Feb 17, 2013

On another note it's half acceptable. Probably a hard boost for Xiaomi to at least ante up their Leadcore investment and get more serious. They can't possibly stick with making cheap Cortex A5 or A7 SoCs from that moving on forward in this coming 2 years that's just insane. Mediatek, Allwinner, Rockchip, Marvell hell you name it are all still here ready to bring the low end pain regardless. Plus it's not like Qualcomm is gonna reject any more business coming their way any time soon..

14. nokia12

Posts: 610; Member since: Nov 19, 2013

no no no ..... that's a very wrong statement.. have you seen benchmarks of mediatek MT6595 ? it is equal to snapdragon 805 in cpu performance for HALF the price https://www.youtube.com/watch?v=0a_eyIGgenE though gpu is a bit weak.. wait for mt6795 it will be equal to snapdragon 810 with cortex A57

3. rd_nest

Posts: 1656; Member since: Jun 06, 2010

It's easy for a small company to grow initially. But ultimately all growth slows down once you reach a level. Price can take you only a certain distance. Smaller companies will undercut you after sometime. The reason Apple is successful because they are above price comparison. Competing on price alone is not sustainable in long term.

4. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

It's a problem for Mediatek not Xiaomi. Coz the Mi4 is cheap and has specs with top of the shelf. So I don't see any problem here for Xiaomi and they are also working with another chipmaker.

5. MTT84

Posts: 50; Member since: Sep 20, 2014

The Redmi phones are selling like hotcakes (I believe millions have been sold already) and some of these Redmi phones are using Mediatek chips. Of course, they can use Qualcomm chips, but I think they are a bit more expensive compared to Mediatek chips. Almost every budget/midrange Chinese phone are using Mediatek chips. If they broke up with Mediatek, they have to mostly rely on Leadcore for the cheap/midrange phones. I don't think there is a big problem for Mediatek also, because there is still a great demand for Mediatek chips. For example, Meizu (also a well known Chinese phone company) have worked for the first time with Mediatek for the MX4 phone and the reports are saying that the MX4 are selling very well.

15. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

They did up the price of RedMi Note that uses Qualcomm chips.

6. acn2003

Posts: 27; Member since: Mar 26, 2014

I believe it's because of Qualcomm investment in Xiaomi. They might be getting Snapdragon for dirt cheap.. why would anyone go for Mediatek if they get Snapdragons for cheap.. qualcommventures.com/investment/xiaomi/

8. dimas

Posts: 3383; Member since: Jul 22, 2014

Mi 4 and Redmi 1s are already running on qualcomm right? Often mediatek is associated with cheap low end phones with bad qualities so it's a good move for Xiaomi.

9. iLovesarcasm

Posts: 589; Member since: Oct 20, 2014

They make very cheap phones with good specs to kill other companies instead of making profits.

10. boosook

Posts: 1442; Member since: Nov 19, 2012

bye bye, Mediatek... ;)

11. greenelektron

Posts: 537; Member since: Sep 10, 2014

Xiaomi can still sell diRt cheap at high quality phones even without the mt chips. Qualcom can sure provide that.

12. fzacek

Posts: 2486; Member since: Jan 26, 2014

This is good for us consumers. MediaTek chips sucked anyway...

13. alexsupertramp unregistered

LOL...I think I would never ever buy a Xiaomi product after this fiasco. If it was Indeed Xiaomi who broke off the trade with MTK just cuz it is in bed with leadcore will just mean bad news for those looking to get with Xiaomi..or atleast the future phones that POS over-rated company is gonna be making in the future with leadcore. Xiaomi is very notorious for not releasing the Kernel sources on time, making sure that user base is stuck with MIUI and hoping they adapt and depend on it just like apple does and just imagine what would happen when Xiaomi is in full control of their phones..from chipset to software that runs on them.. No more open source android..and an end to custom ROMS on Xiaomi devices... Looks like they are planning to copy apple even in the "restrictive" OS experience. What is funny is all those who adapt and love android for the flexibility it gives, flock to MIUI.. ah..the Irony there.. Uhnn..uh... Imma stick with My OnePlus, HTC, Meizu, IUNI and even ZTE.. but a strong No when it comes to Xiaomi. I advice all my friends against this POS company.

16. wadjj

Posts: 1; Member since: Dec 04, 2014

"The little known Xiaolong".. Are you ***** kidding me? That's Snapdragon you were talking about...

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