Exhibition counter-attack MediaTek Tsai emergency comeback fire

The founder and chairman of MediaTek Technology Corp. (hereinafter "MediaTek"), a low-key "godfather of Tsai", once again moved to the front desk.　　But this time, he played the role of "fire fighting". "Cai Dong (Tsai) In recent years, not too much pipe specific business, but the recent decline in MediaTek, Cai Dong began to grasp the specific work, especially the mobile phone chip business."　　"August 20, MediaTek China, a high-level told the newspaper reporter.　　Soon after, MediaTek had just released a "bleak" two-quarter earnings, with a net profit of NT $9.03 billion (equivalent to $282.7 million), down 18.9% and 1.4% per cent in the previous quarter and the same period last year.　　More seriously, MediaTek also gave a "pessimistic" warning of three quarterly revenues – expected to reduce revenue by 8% to 15% per cent in the three quarter and gross margins to 52%. "MediaTek has suffered the most severe moment since entering the mainland market.　　"The first task of Tsai," said Wang, a director of research at Isuppli China, is to intercept the further backdraft of the market. Starting in the second half of 2009, as MediaTek's biggest competitor, the city began a Jedi counterattack in the mainland's GSM phone chip market, eroding the almost-monopolized market in MediaTek.　　According to isuppli data, the market share has climbed from 5% in early 2009 to 15% by the end of July. This is a long time to disappear.　　August 12, the exhibition released the "Best In History" quarterly, the two quarter of this year's sales revenue of 71.4 million U.S. dollars, a sharp increase of 340%, the net profit of 11.1 million U.S. dollars, year-on-year growth of up to 68%.　　On the day of the quarterly release, the president of the exhibition, Lili Tour-the key to counter MediaTek's core figure, formally as chairman, as the new leader of the exhibition, a complete Goodbye to the "Wu era."　　Tsai and Lili tour the two mainland communications chip market strength JAG, will be the first to PK Arena. "The last Stick" is little known, Tsai is one of the early investors.　　But I am afraid even Tsai himself could not have expected that, after many years, the exhibition will become MediaTek's largest competitor in the mainland market. Before and after 2004, with the creative "Turn key Model", that is, one-stop solution, MediaTek dabbled in the mainland market at the beginning of the way Gongchenglvede.　　For a time, TI, ADI, Infineon and other communication chip manufacturers have faded out of the domestic market. "The first TD business can not be mass production, can only rely on GSM chip to maintain revenue."　　"Wang analysis, whether active or passive, the exhibition has become against MediaTek's camp," the last stick. In fact, the exhibition, which was founded by the returnees, was not a very competent research and development. April 2003, the first GPRS (2.5G) multimedia baseband integration single chip was developed successfully in the world. "But the technological advantage has not been translated into commercial impetus. "The staff of the exhibition is still brooding over this." Contrast，MediaTek, from Taiwan, seems to be more adapted to the mainland market. "MediaTek is a pioneer of the mentality of entering the mainland, its early customers pioneering work is extremely resilient, coupled with product advantages, the market rose quickly." "A cottage machine industry veteran Personage recalls."　　According to Sino Data, as of 2007, MediaTek accounted for 45% of China's GSM handset chip market by 12%. There is no chance of a "comeback". 2008, exhibition in the Chinese market pioneered the invention and production of a single chip dual-card double technology-"when dual SIM cards are increasingly mainstream, this technology has greatly catered to market demand."　　"Wang evaluation. But the exhibition card dual-chip applications to a number of motherboards, but the quality problem has erupted, and finally let the hope in the "star products" market. "Performance instability was once the first problem that bothered the product. "The staff told reporters:" At that time, Wu Ping is often tired of dealing with customer complaints, Peter Paul. "In the quality of the problem spread too much energy at the same time, the early exhibition in the market development appears to be insufficient initiative." "It is rare to see him take the initiative to visit small and medium-sized clients. A person in the marketing department told reporters. Wang said: "Wu Ping is a good technology entrepreneur, but not a successful businessman." "At the beginning of 2007, MediaTek MT6225 was officially listed on a massive scale, with a highly integrated multimedia-enabled chip that pushed MediaTek to near-monopoly market position with a very high price/performance advantage."　　At the end of 2008, MediaTek accounted for about 85% per cent of the market, according to data from Isuppli. After MediaTek gained a seemingly unshakable market position, Tsai gradually faded out of the business relationship and focused on the company's strategic level in 2009.　　In contrast to this, in February 2009, Lili Tour replaced the post of the CEO of Wu Ping, became the new helmsman.　　There is not much reason to be optimistic about the Li Li of the show. 2008 years of the Four Seasons, the exhibition revenue of only 10.2 million U.S. dollars, the year-on-year decline of 79%, net loss of 52.3 million U.S. dollars.　　In response, the company's share price rose from the top 16.25 US dollars, to the lowest of $0.67 in November 2008. Improving product quality is the first step for Li Li's CEO.　　At the beginning of 2009, the exhibition began to select the technical backbone from each team in the research and development Department, to form the product quality tackling group, to adopt the responsibility to the person's management system, to solve the product quality problem. But to rip a gap in the near-monopoly market of MediaTek, it needs a revolutionary product. May 2009, 6600L officially listed in bulk. "6600L is mainly for MediaTek's classic MT6225, similar performance, the former price is about 1 dollars cheaper than the latter."　　"Wang Analysis, in the Shanzhai phone market, less than 10 yuan in the meager profit, 1 U.S. dollars means a greater cost advantage." More than this, compared to the "era of the Wu," the formerBroadcom senior business development director Lili Tour, in the market development, more proactive.　　Reporter from Shenzhen small and medium-sized mobile phone manufacturers and design companies to understand that Li Li often personally lobbying, let it turn to the exhibition. Wang said: "In the face of MediaTek's already monopolized market, to Backdraft, the exhibition also needs to wait for opponents to make the wrong opportunity." "In the second half of 2009, the 6600L began to pressure MediaTek at the start of the market," he said.　　including Mirs Holdings, Tianyu Lanton and other MediaTek's "hardcore" customers, began to try to use the exhibition scheme. "MediaTek needs a more cost-effective chip to intercept the 6600L. Shenzhen Semiconductor Industry Association industry research leader Pan analysis.　　This is also the first half of this year, MediaTek hopes very high new--mt6253 research background. In order to improve the cost performance, MT6253 adopts a new single chip design and utilizes the most advanced AQFN packaging technology.　　However, in the mainland, many of the OEM factory, for AQFN packaging technology, chip technology, in the technical reserves of serious deficiencies, leading to MT6253 once performance instability. "MediaTek, eager to reduce the cost of products, has made a rash mistake.　　The seriousness of the problem, Pan said, was that the plan was to replace MT6225 in the first half of the year, making it a MT6253 for MediaTek's classic products at the end of last year. "This has made MediaTek into a dilemma. MT6253 's promotion failed to meet expectations, while MT6225 faced shortages. "MediaTek suffered a market fault in the first half of the year," an insider told reporters in an interview. "For the exhibition, this is an opportunity for opponents to make mistakes." One MediaTek partner told reporters: "It was in April and May that many of MediaTek's clients were switching to the platform."　　"Between the two, isuppli figures show that as of the end of July, MediaTek's market share slipped below 80%."　　Tsai fire a number of Shenzhen mobile phone manufacturers to our correspondent confirmed that in recent months, has always been low-key Tsai, frequent visits to Shenzhen. "Mainly is listens to the customer feedback, may feel Cai Dong to the market decline, has certain worries."　　"A Shenzhen mobile phone operator who has seen Tsai recently told reporters.　　In the face of increasingly competitive profit-making mobile phone market, the price has become Tsai "fire" the first recruit. "As MediaTek has a near-monopoly market position, it has a strong bargaining power over downstream customers," he said.　　"Wang Analysis, in addition to normal product replacement price adjustment, MediaTek in recent years a rare" initiative "to reduce prices. But in the face of the decline in performance, Tsai also had to take a price reduction strategy. This reporter learned that since early August, MediaTek's various sections of the communications chip product line, there are different degrees of price reduction.　August 20, MediaTek China Ltd. China Business development Director Xu Maojong to our correspondent confirmed that the recent MediaTek products have indeed begun to reduce prices, but he did not disclose the price range.　Several industry personage analysis, MediaTek price reduction space is limited. In fact, MediaTek's recent rise in performance has also made its share price a one-time "Taiwanese stock King". "There is not much room for a reduction in MediaTek's gross interest rate to keep the growth behind its high share price."　　"Pan analysis, in the price strategy, compared to the exhibition, MediaTek less flexible." In addition, Tsai has not given up on the main products MT6253 "remedial" measures. MediaTek has stepped up its technical support for the MT6253 patch plant to boost its product yield, according to a senior executive at Mirs Holdings.　　In addition, MediaTek is also actively communicating with the flash vendors to ensure the capacity of MT6253 supporting Flash.　　Multiple "remedial" efforts, Gionee and other domestic manufacturers, in the near future also began to enable MT6253 chip. "Low-end GSM handset chip market, the price fight already white-hot." The rise of MediaTek needs to find new market hotspots.　　"Wang analysis. The latest news from our correspondent shows that MediaTek's smartphone chip, based on the Android platform, has been shipped to downstream handset integrators and will soon be available. "Smart chip will be MediaTek next market focus, its GSM chip market follow-up effort, it remains to wait and see." "Wang analysis.