Smartphone growth slowing, mediatek up intelligent mobile phone chips shipment target for 2016, on behalf of the next year will launch a scorched-earth battle in the mobile phone chip market.

Market speculation, short-term will pay product price (ASP) and the cost of decline in gross margin.

Mediatek throughout the year 4 g chip shipments of more than 150 million sets, although ASP ascension, but due to the heavy price pressure, market turned into 4 g, 3 g revenue increases is limited, plus 4 g chip cost structure is poorer, the gross profit margin on this year's 4 g chip has been below average.

Pressure from price, which has been reflected in mediatek and qualcomm, gross margin and profit performance. The two companies, 3 quarter year-on-year decline forty percent.

Mediatek, therefore, continue to push higher order products of the highest order "Helio x20" chip will be in season 1 production next year, more than ten customers, in the design of the first half of next year's price is expected to stand above $25, conducive to the stability of ASP.

However, in the intelligent mobile phone market is generally expect is less than the double-digit growth, mediatek chip shipments increased twenty percent will represent to sprint, share, scorched earth war is inevitable.

For mediatek, if can by scorched-earth battle, wash the enemy out of the market is the best result. But if can't find other better cost structure, ASP and gross margin will face downward pressure.