MediaTek's unreleased Helio P23 faces a price cut to match discounted Snapdragon 450 SoC

MediaTek's unreleased Helio P23 faces a price cut to match discounted Snapdragon 450 SoC
With the Snapdragon 450 chipset recently the subject of a price cut to $10.50 per chip, the competition now must follow suit or find themselves behind the eight-ball when it comes to pricing. And if you're MediaTek, that means cutting the price of the unreleased Helio P23 series, a line of chipsets designed for mid-range smartphones. According to "industry sources," MediaTek is now considering dropping the price of these chips to less than $10 per unit.

Samsung reportedly pays $2,500 per wafer to produce the Snapdragon 450 SoC using the 14nm process. That gives Qualcomm plenty of wriggle room when it comes to dropping prices. On the other hand, TSMC is paid more than $3,500 from MediaTek, which is the cost of 16nm per wafer. And while MediaTek originally priced the Helio P23 chipset at $15, the price has drifted down to $11-12 as the company sought orders for the chip from its customers in China. Handset manufacturers rumored to have placed orders for the chip set include Oppo, Vivo, Gionee and Meizu.

Set to launch in the fourth quarter of this year, MediaTek hopes to ship 5 to 6 million units of the Helio P23 each month. But thanks to the price cutting by Qualcomm, the mid-range market will continue to be very competitive during the remainder of 2017 which will have a negative effect on margins.

source: Digitimes

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12 Comments

1. Phonehex

Posts: 767; Member since: Feb 16, 2016

can someone please tell me the pricing of chips from different manufacturers or at least provide a link . I searched but couldn't find anything concrete.

3. sgodsell

Posts: 7456; Member since: Mar 16, 2013

This new SD 450 has many features that are equivalent to the SD 625. As a matter of fact the 450 and 625 have the same fab, GPU, DSP, memory speed and type, modem, and connectivity. The only difference is the CPU is rated at 1.8 GHz for the 450, and 2.0 GHz for the 625. As far as pricing goes, it fluctuates by the volume, and by the OEM. It's hard to get a pinned down amount. Especially since sampling doesn't start until Q3 2017. So consumers won't see a device with this new SoC until the new year.

5. Guaire

Posts: 890; Member since: Oct 15, 2014

Apple A10, 26.90USD. Snapdragon 820, 62USD @Q2 2016 for Samsung S7. Snapdragon 821, 50USD @Q4 2016 for Google Pixel. Exynos 8895, 45USD.

7. sgodsell

Posts: 7456; Member since: Mar 16, 2013

The A10 isn't sold to anyone. So it costs Apple 26.90 to build each one of them. I thought it cost a little less than that for Apple to make each SoC. Also the SD 820 has dropped a lot in price since it first came out last year. Qualcomm doesn't hold the same prices that the SoCs were first introduced at. The prices change as time marches on.

2. GreenMan

Posts: 2698; Member since: Nov 09, 2015

I don't recall a smartphone that has been launched with 14nm Snapdragon 450 Octa yet? So, why the prices are being dropped if the chips hasn't even made it to consumers yet? There's no competition for SD450 currently in the market; aside from Samsung's own Exynos 7870 Octa which is more comparable with SD625/626, so that makes little (to no) sense to drop the prices, eh? Oh well, I never understood silicon valley, probably never will! When I look at Mediatek's lineup, it reminds me of KTM's dirt bike line-up! I mean, Medatek's quad core MT67** Series has TONS of brethren. Some have higher clocked processors, some have higher RAM clock which translates into better bandwidth, some have higher clocked GPUs, some have bigLITTLE architecture while some are true octa cores and some seems to have no difference at all and yet they all have been released in the same fiscal quarter? Am I missing something? Oh well, G'Day!

4. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I also find Mediatek product lines to be confusing with overlapping budget, mid range and flagships. They seem to be releasing a new chip so very often too!

6. sgodsell

Posts: 7456; Member since: Mar 16, 2013

As time marches on these low end chips are becoming fast enough to take on mid range to high end chips from just a few years ago. So in this case the 450 is almost fast enough to take on the SD 625, which in this case is only a year and a bit ago. It's just like some of the newer SD 6xx chips now are actually faster than some of the older SD 8xx chips. This is going to continue as time marches on.

9. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I just wish they label their chip in a sequence order much like the desktop CPU. its easier to keep track. Example what Intel did, with the Pentium Dual-Core, I3, I5 and I7. That's said, I am glad MediaTek is advancing its SOC at a very rapid rate with decent performance on their Helio series.

11. tangbunna

Posts: 485; Member since: Sep 29, 2016

i always see MTK is inferior chip compared to qualcomm. power/efficiency/battery life....

12. UglyFrank

Posts: 2194; Member since: Jan 23, 2014

Considering the S8 design matches parents from 2 years before it's release, we can imagine the non-public business knows about these things faster than we do

8. domfonusr

Posts: 1087; Member since: Jan 17, 2014

I imagine that Qualcomm is trying to edge MediaTek out of the market. If Qualcomm does some real cut-throat maneuvers right now, that could throw MediaTek off of their game. I haven't switched to MediaTek processors at all, but I have often imagined that MediaTek is good enough to get my vote at some point. Besides, Qualcomm is acting like a big bully right now.

10. Duncdawg26

Posts: 176; Member since: Jan 20, 2017

1.) How indicative is it that Mediatek's P series is competing with Qualcomm's entry level 400 series 2.) I'm pumped about this news. Not because of the p23 but because of the 450. Remember how the 625 was only in $400 phones for its first year despite its intented price bracket being the $200-$300 bracket. Hopefully this means instead of the 450 debuting in $200-$300 phones it'll debut in its intended price bracket, $150-$200.

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