Qualcomm polished chip cost-effective 4G industry chain join hands to lower the threshold

While China Mobile lowered its 4G tariff, Qualcomm, a supplier of 4G core chips, also lowered its threshold.

“Now our global development team is understanding the word 'price/performance'.” On May 15, Qualcomm senior vice president and China COO Roger Jeff said in an interview with the 21st Century Business Herald, Qualcomm launched QRD in recent years. The significance of the project is not only to include more and more Qualcomm chipsets in the QRD series, but also to lower the threshold for the use of terminal manufacturers and solution providers, and to make the entire Qualcomm company "QRD".

QRD, which is a reference design, is the main mode for Qualcomm chips in the low-end market and MediaTek's turnkey solution. It allows handset manufacturers to reduce post-development costs and shorten the time-to-market for Qualcomm chips.

Roger Jeff revealed that in the face of the rapid entry of mobile phone manufacturers into the 4G market, Qualcomm has already incorporated multiple 4G chipsets into the QRD program.

4G is less than expected in the first quarter

China's 4G licenses were issued, which once allowed mobile phone manufacturers and operators to enter a state of excitement. In particular, China Mobile proposed an ambitious plan to sell 100 million 4G mobile phones throughout the year at the beginning of this year. Many mobile phone manufacturers have correspondingly proposed sales forecasts for 4G mobile phones to account for 40%-60%.

However, from the current point of view, one quarter has passed, and 4G terminal sales have not shown an explosive situation.

According to the “China Mobile Industry Operation Status” announced by the Ministry of Industry and Information Technology in the first quarter of 2014, the total shipment volume of mobile phones during the period was 100 million units, down 24.7% year-on-year; among them, the new mobile phones using 4G (TD-LTE) standard were 50 models. The shipment volume was 9.74 million units.

In the first quarter, 4G mobile phone shipments were less than one-tenth of China Mobile's annual sales forecast of 100 million. At the same time, the total number of 4G subscribers that China Mobile has developed so far is 4 million.

"At the end of last year, everyone expects 4G terminals to be very high, and they are vying for layout. They believe that the sales frenzy is coming soon." A mobile phone manufacturer executive recently told reporters of the 21st Century Business Herald. But from the current point of view, due to network coverage and other factors, the real outbreak may have to wait until at least the fourth quarter of this year.

In addition to the 4G network is still in the early stage of construction, the coverage and optimization level limits the factors of user growth. The reasons why the domestic 4G market is not expected to break out include the higher operator fees and the limited number of cost-effective mobile terminals.

China Mobile’s tariff adjustment announced on April 14 is a change in the status quo. According to China Mobile's new tariff policy, which will be officially implemented nationwide on June 1, the unit price of traffic will drop by 50%, and the minimum monthly package will be reduced from 88 yuan to 58 yuan.

The price reduction of mobile terminals is largely dependent on the actions of upstream chip vendors. At the end of last year, although there were mobile phone manufacturers that announced that they would launch 4G smartphones in the price range of 1,000 yuan, they were mainly based on the three-mode solution of chip manufacturers such as Marvell.

However, China Mobile updated its TD LTE white paper in March this year, stipulating that the custom 4G mobile phone must support five models after the end of May. Because Qualcomm's mobile phone baseband chip has advantages in supporting 4G five-mode, this policy not only makes other chip manufacturers unprepared, but also blocks some small and medium-sized mobile phone manufacturers that do not use Qualcomm chip platform.

"Even if you switch to Qualcomm's chips, re-development is not a one-off effort." A mobile phone industry insider told 21st Century Business Herald.

To a certain extent, Qualcomm will include some low-end 4G chips into its QRD program, which can greatly reduce the adoption cost of small and medium-sized manufacturers.

"What we are focusing on is how to make it simple." Larry Paulson, vice president of product management at Qualcomm, said that all products released by Qualcomm in the past nine months to one year are for 4G, including its Snapdragon 410. Multiple low-end and mid-range 4G chipsets such as 610 and 615 are included in the QRD program.

Larry Paulson said that from the perspective of chip complexity, the previous generation and second generation were mainly faced with multi-mode problems, and the biggest problem of 4G was the frequency band problem caused by the rapid increase in data consumption. Currently, the standard products on the market are Support 5 mode 10 frequency, "Looking ahead, I also feel that nothing can make it easier."

Qualcomm's "QRD"

Roger Jeff told 21st Century Business Herald that not only small and medium-sized mobile phone manufacturers and solution providers have strong demand for QRD, even those top ten mobile phone manufacturers rely on the QRD platform to reduce R&D costs and listings for mass-market products. Cycle to put more energy into the flagship model.

“This is the fifth QRD summit we held in Shenzhen.” Rogerf said that since more than four years ago, Qualcomm's QRD platform has more than 425 products launched in 21 countries, and OEMs have cooperated. And more than 40 planners.

Similar to MediaTek's “turnkey” model in the 2G era, Qualcomm QRD provides mobile phone manufacturers with a pre-test and optimization platform that encompasses a variety of hardware, software and applications that meet the basic functions of smartphones, such as memory, sensors, Touch screen, camera, display, RF and browser, map, mail, music, etc. To this end, Qualcomm has also established a “Recommended Supplier List” to keep the hardware components and software applications on the list up to date.

Larry Paulson said that for mobile phone manufacturers, the significance of QRD is mainly in three aspects: first, to make products faster to market; second, to enhance the product's liquidity; third, to reduce the complexity of research and development.

In Roger's view, Qualcomm has not only added more and more chipsets to the plan since it entered the QRD platform, but the entire business process within Qualcomm has begun to “QRD”, whether it is the QRD team or Non-QRD teams have been affected by this concept.

For example, Qualcomm's global development team originally served the world's top vendors. Now they are turning their eyes to China to understand how Chinese mobile phone manufacturers operate, and they are beginning to put the word "price/performance" on their lips. “Understand what they need and understand what they only need”

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