Tag: subsidies

Samsung edged out by Chinese vendors

Samsung HQ Silicon Valley - MM picA report said Samsung faces increased competition from mainland China.
And that will affect Apple’s bottom line too, according to a survey by Taiwanese market research company Trendforce.
It published figures that showed that in 2014 home grown companies Huawei, Xiaomi and others managed to ship 453 million units – nearly 40 percent of total smartphone shipments worldwide.
Samsung is being squeezed by Apple as well as Chinese smartphone brands but Apple itself is showing signs of losing the brand loyalty it largely depends on.
The company predicts that during 2015 the Chinese branded smartphones will account for shipments of 531 million units. That will be a growth, year on year, of 17.2 percent.
But the Chinese brands showed a growth last year of 54.8 percent.
One of the reasons for the smaller growth is because Chinese telcos have been cutting subsidies, making handsets more expensive.
But that is also likely to affect Samsung and Apple too.
When Samsung released its financial results recently, it reported smaller profits on its smartphone devices in the face of increased competition from Apple and others.


Intel revises its pay outs for vendors

Intel-logoIt looks as if Intel will stop providing pay outs – in euphemistic terms – subsidies, for people making mobile phones using its technology.

According to Taiwanese wire Digitimes, while Intel had an apparently sparkling set of financial results recently, it is going to restrict these payouts to all but the biggest players

It is significant that despite these sparkling results, Intel’s mobile unit, as we reported yesterday, was a loss making venture.  Intel beancounters don’t like making losses.

Digitimes said that Intel is concentrating on reducing costs for the bill of materials making up smartphones.  The writing on the wall for Intel has been clear to the chip giant for quite some time.  Vendors using ARM chips and non-Windows operating systems feel a little bit freer to pursue their own path.

According to the same report, Asustek, one of the bigger Taiwanese vendors, ordered over seven million Intel Atom processors but the level of rebates remains unclear.

Asustek will almost certainly continue getting pay offs from Intel because it’s estimated it will soak up at least fifteen million processors during the calendar year 2015.