“In the past, Qualcomm would just offer the chips and the manufacturer would do the whole device“, said David Tokunaga, one of Qualcomm’s senior directors in product management. Chip manufacturers, however, in order to increase their own business, are helping out their own customers (smartphone makers). They do that by offering an entire package of services, instead of just a product (the chip).
“Now we offer a whole hardware ecosystem that makes it very easy for customers to just plug and play what they want“, added Tokunaga. Reuters reports that chip manufacturers are also helping smartphone makers find components like speakers, or camera modules. Taiwan-based MediaTek’s success in conquering half of the Chinese market for smartphone chips is mostly due to the fact that the company also offers hardware, and even the phone design, in addition to chips, according to an analyst. “MediaTek gets all the components ready for the client, so all the manufacturer has to do is put the phone together” said SinoPac Securities’ analyst, Sherman Shang at.