It seems that every new high-end mobile phone is powered by a Qualcomm chip, but there’s a new name in town, writes ARTHUR GOLDSTUCK.
The typical cellphone user doesn’t care who makes the insides of that cool new handset, but it’s a major selling point for manufacturers and resellers. For several years, it was a badge of quality to claim a Qualcomm processor as the heartbeat of the device.
Now the San Diego-based chipmaker is facing growing competition from the other side of the world.
MediaTek, headquartered in Taiwan, has quietly risen to number three in the world, with 2016 revenue of around US$8.6-billion. That’s still less than half of Qualcomm’s $23.5-billion, and some way behind number two, Broadcom Limited, at $13.2-billion. But, for a brand that has been primarily known as a chip supplier for cheap feature phones, its rise should send warning signals to the market leaders.
It also powers some of the best-selling entry-level smartphones in the world, and is beginning to rise up the value chain.
“We consider ourselves number one in the world in feature phones, so that’s still a very strong focus of the business,” says Dominique Friedl. “In smartphones, our biggest strength exists in the entry smartphones, from the Vodacom Smart Kicka, and other 3.5-inch display smartphones, pushing all the way up into the mid-tier smartphones, like the Sony Xperia XA, Samsung Galaxy Grand Prime Plus, and brands like TECNO, Infinix and Itel.”
The latter three are all owned by Transsion Holdings, which has become one of the most successful smartphone businesses in West and East Africa, and is slowly entering the South African market.
“Each of its brands is positioned to serve a particular segment of the market, with Infinix at the top, TECNO in the middle, and Itel as the entry-level brand,” says Friedl. “All use MediaTek.”
He points out that South Africa is very different to the rest of Sub-Saharan Africa, where retailers dominate cellphone sales, whereas this country’s market is driven by operators. That makes it more difficult for new brands to enter the market, unless they are able to build a good relationship with operators.
Nevertheless, home-grown brands Mint and Mobicel, Latin American entrant Azumi, and Transsion are all making inroads into the South African market.
“It’s quite a rainbow nation of brands that MediaTek supports. Our strength was traditionally in the Chinese market, and then supporting regional brands.”
In South Africa, it is already a dominant player. With some estimates putting annual smartphone sales as high as 16-million, MediaTek has a market share of
about 45%, or just under 8-million. For the entire Sub-Saharan Africa, it is forecasting 120-million smartphones, and 100-million feature phones.
“South Africa and Nigeria remain the two biggest markets,” says Friedl. “Growing rapidly behind them, we see the East Africa countries, Kenya, Tanzania, Uganda, and now also Ethiopia. That’s a unique market because it has one mobile network, which drives the market in a specific direction.”
The ability to address the opportunities as well as the complexities of global markets has grown MediaTek to 15 000 people globally, and more than 30 global offices. It has grown turnover between 20 and 30 percent a year for the past few years, almost doubling revenue in three years.
Yet, this may be just the beginning. As more and more consumers decide that mid-range phones meet their needs just as well as expensive flagship devices, a new category is emerging, says Friedl.
“We’re starting to see the New Premium. You saw a decline in flagship phone sales in 2016 as people started questioning the diminishing returns of upgrades. The result is the trend towards the New Premium tier.
“It’s really by demand from customers and what their expectations are of phones. They want quality technology, performance, and power, all the things that were flagship features, but they want them now in mid-tier devices. That’s where the exciting stuff will happen in the next two years.”
The result is that the features that are currently associated with top-of-the-range smartphones, like dual cameras, edge to edge display, and fingerprint and biometric sensing, will arrive in mid-tier phones in the next year or so.
“You can equate it to Formula 1 racing, where advanced technology is developed in Formula 1 cars and then finds its way into commercial vehicles down the line. That’s the trend in 2017 and 2018 in smartphones.”
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.
Deezer to host Hotstix’s Mandela tribute playlist
Deezer is celebrating Nelson Mandela on the centenary of his birthday by hosting a tribute playlist created by music legend Sipho “Hotstix” Mabuse.
Mabuse, a legendary figure in African music, first rose to prominence in the 1970s with his band Harari and later developed a name for himself as a solo artist. One of his best known songs was the global hit BurnOut in the 1980s.
The playlist takes the listener on a captivating musical journey through the life of Nelson Mandela. It was compiled by Mabuse, who consulted with Mandela’s family and friends to ensure that the music would be relevant and accurate. The playlist also features commentary by Mabuse, which was recorded in his Soweto home.
“I have tried to tell the story of the music that Madiba loved,” says Mabuse. “The Playlist excludes the time in prison obviously, as Madiba would not have had exposure to music in that time. We have focused on the music we know he loved before and after that period. This recording was really an emotional journey for me, but an incredible opportunity to document these memories.”
The playlist features the music the young Mandela loved, such as The Manhattan Brothers, Solomon Linda, Brenda Fassie and Miriam Makeba. It includes struggle songs from Chicco, Johnny Clegg, Hugh Masekela and Yvonne Chaka Chaka. The playlist also includes Mandela by Zahara, one of the younger artists who caught Madiba’s ear.
Mabuse also offers stories of his own songs, such as Shikisha, a song greatly beloved by the former President.
“I was delighted to share my thoughts and hope the listeners enjoyed the musical journey,” says Mabuse. “Madiba did enjoy music immensely and we all have a purpose wherever we are in the world to celebrate culture and to learn from different cultures and music forms and styles.”
This playlist was inspired by the Nelson Mandela 100 campaign, calling on corporates and individuals to act as sources of inspiration and engage in conversation and action.