MediaTek executives concussion "father of Shanzhai" lean

I gave my resignation today, and I'll have more time to contact later. In the evening of November 5, some Taiwanese media reporters received such a message.　　The sender is the CFO Ming of MediaTek, the world's largest handset-chip company.　　On the morning of November 8, MediaTek China Limited confirmed to our correspondent that Ming has tendered his resignation and said it was for personal reasons. Prior to October 18, MediaTek's Wireless communications Division general manager Xu Zhi has faded out of the first line of work, transferred to a consultant.　　Within a short period of time, two senior executives have changed, and MediaTek has become the industry's focus.　　A background that cannot be overlooked is that, on November 1, MediaTek released its most gloomy quarterly report since it entered the Chinese market – a double dip in revenues and net profits, with net profits falling by 41.3% per cent year-on-year. "MediaTek's market share and gross margin will face further downward pressure in the coming period," he said.　　Wang Yanhui, a semiconductor industry analyst, believes that high level shocks in this context are an intrinsic microcosm of MediaTek's plight. The CFO left "the total turnover, let everyone feel very suddenly." A number of MediaTek insiders said to reporters. The recent Beijing Communication exhibition, Ming also visited MediaTek Booth and interviewed by the media.　　But in Friday, Ming suddenly in the form of mobile phone messages to some media reporters to disclose their resignation, the industry is quite surprised.　　Since 2001, Ming in charge of MediaTek Financial accounting, investor relations, but also a spokesperson, responsible for media PR, brand image building and other matters. "As a upstream chip company, MediaTek has always been a low profile in the face of media.　　"But with the rise of the Shanzhai market in recent years, MediaTek has been portrayed by the industry as" the driving force behind the Shanzhai, "a source told reporters. "Especially in the 3G era, in the face of operator customization market, ' Shanzhai ' brand image of MediaTek is extremely detrimental."　　"The above MediaTek insiders have told reporters that Ming has done a lot of work to guide the public to understand MediaTek correctly."　　A number of industry insiders believe that Ming's resignation when MediaTek is at the bottom of the market will have a negative impact on MediaTek's market expansion. By contrast, Xu-Qiang's "shift" is related to MediaTek's first-line business of mobile chips.　　In 2009, MediaTek's mainland market share was once as high as 90%, the world's first sales over Qualcomm, the largest number of communications chip manufacturers, which is responsible for the mobile phone business of the Xu Xeon. With the first half of this year, MediaTek in the market in the fight straight, Xu Xeon gradually "fade out." Starting in August this year, Mr Tsai, MediaTek's chairman, returned to work on the mobile-phone chip market, which is exactly what Mr. SEO is responsible for.　　October 18, Xu Xeon officially transferred to the consultant. MediaTek's "tough time" even though MediaTek officials say recent high-level changes are normal personnel adjustments. But in the eyes of a large number of industry insiders, this is related to the dismal recent performance of MediaTek。　　On November 1, MediaTek's three-quarter earnings showed revenue of 28.181 billion NT dollars, down 5.9% from the previous quarter, down 18% per cent year-on-year. "The decline in revenue is inevitable, which is related to the competitive pressures that MediaTek faces."　　"Shenzhen mobile phone manufacturers Huayu Communications general manager Shi Zhizhong told reporters that the beginning of this year, the exhibition and MStar by virtue of price advantage, grab a lot of MediaTek's market share."　　And MediaTek hopes very high new MT6253, at the beginning of the market performance instability, but also let competitors "take advantage". "A growing number of MediaTek hardcore customers are switching to the MStar platform.　　"Shi Zhizhong revealed that due to market demand, the exhibition 6600L chip at once appeared out of stock.　　According to research from Isupply, MediaTek's market share slipped to 71% in the three quarter of this year, and the show's share climbed to 22%. "The fact that low-end handset chips have fallen is not the whole of the pressure on MediaTek," he said.　　"The future 3G market will be another test for MediaTek," said Isupply Senior analyst Gu Wenjun. In the 3G layout, MediaTek has no products in CDMA2000, and WCDMA chip shipments are rare. and its cooperation with core technology TD chip, is MediaTek in the 3G mobile phone market, the largest source of revenue. But before long, the core technology developed by the TD Chip has been volume production listed.　　Sun Yu, president of the core technology, said publicly that its independent research and development chip performance is better than the cooperation with MediaTek-this is considered to be the signal of the two sides break up. "MediaTek is in a transition from 2G to 3G. At present, 2G products are facing the pressure of competitors, 3G lack of mature independent product line.　　"In Gu Wenjun's view, MediaTek is in the" toughest moment "since entering the Chinese market.　　A price cut of 34% didn't work. In the third quarter earnings statement meeting, MediaTek general manager Xiaiqingjiang said, in the company's existing business, cell phone chip business is still the big head, accounting for about 70% to 75%--most of them are 2G mobile phone chip products. How to improve the performance of low-end chip business as the core business is the key to whether MediaTek can turn the tide.　　In this context, MediaTek first provoked a price war.　　This reporter learned that this year's national day just over, MediaTek main products MT6253 from the original 4.4 U.S. dollars suddenly down to 3.6 U.S. dollars, in early November, again price adjustment, finally to the current 2.9 U.S. dollars. "In just one months, the decline reached 34%, the intensity is unprecedented." Wang Yanhui that MediaTek's move was a dilemma.　　MediaTek's gross margin has fallen--three, gross margin 52.2%, down 8% year-on-year. "Price reduction is the last resort for MediaTek.　　"Wang Yanhui analysis, MediaTek has been Taiwan's" Stock King ", a sharp cut in product prices, will undoubtedly be the company's profits and share prices constitute further pressure. But according to our reporter's market research, MediaTek price war effect has not yet appeared. "In fact, 1Since 0月, the exhibition and MStar are still on the rise. Shi Zhizhong to the reporter analysis, MediaTek partial product line flaw, let its price reduction strategy appears relatively thin.　　For example, in the three-card three to chip products, MediaTek has not yet launched products, and in India, the Middle East and Africa and other carriers in the market, the exhibition of the three card three for product demand continues to climb. Although the 6600L faces a certain price pressure, but differentiated product layout, effectively hedging the price impact.　　"Wang Yanhui analysis. The October revenue from MediaTek is also supported.　　MediaTek's monthly revenue of 7.375 billion NT, still fell 23.47% Year-on-year, the chain fell 25.16%. "The future low-end handset chip market, will reach a market balance point, MediaTek, exhibition and MStar three will reach a relatively balanced ratio." Wang Yanhui analysis, the near monopoly of MediaTek will be gone.