Some analysts in the United States believe that the cooperation between China's two fast-growing mobile phone brands OPPO and vivo and Qualcomm will deepen this year, which will help increase the latter's chip market share in the Chinese mobile phone market. This is a win-win choice under the new situation.
Domestic market OPPO and vivo need to change
In the past few years, the rapid rise of OPPO and vivo in the domestic market has a very important relationship with their huge investment in advertising marketing and offline channels. Through the cooperation with traditional advertising and marketing giants such as Hunan Satellite TV, which has considerable influence in the domestic market, the popularity of the highly popular TV programs, OPPO and vivo has quickly started.
At the same time, in the past few years, Huawei and Xiaomi have cooperated with Internet marketing and other incentives in the first and second tier cities. OPPO and vivo have cooperated with mobile phone sales outlets in the third and fourth tier cities and rural towns and villages. Sales outlets. The combination of the two has caused their shipments to soar rapidly, but as their market share in these markets peaks, it is inevitable to enter the first and second tier cities to compete with Huawei and Xiaomi to drive shipment growth.
After Huawei and Xiaomi have in-depth education for users in first- and second-tier cities, users in these markets are already familiar with the performance parameters of mobile phones, and they are more rational than users in third- and fifth-tier cities, which forces OPPO and vivo to change their previous practices. .
At present, the main mobile phones of OPPO and vivo are shooting, audio, etc. The former has its own unique VOOC flash charging technology. With the efforts of advertising and offline promotion personnel, users in the 3rd and 5th tier cities have neglected the performance of mobile phones, so they In 2016, it mainly used MediaTek's low-end and mid-range chips. In October last year, as China Mobile required mobile phone companies to support LTE Cat7 technology, OPPO and vivo finally changed to use Qualcomm's chips to launch new mobile phones, and vivo chose Qualcomm's mid-to-high-end chip Snapdragon 652 chips.
OPPO and vivo have already surpassed Huawei in the domestic market in the third quarter of last year. The latter began to target them. Huawei's mid- to high-end market mainly uses its own Hisilicon chip. The performance of Kirin 960 launched last year by Hess Catch up with Qualcomm's Snapdragon 821, of course, more than Qualcomm's mid-to-high-end chip Snapdragon 65X series. OPPO and vivo will compete with Huawei in first- and second-tier cities, and they will need to adopt Qualcomm's high-performance chips in the mid- to high-end market.
Overseas markets OPPO and vivo need Qualcomm
In the third quarter of last year, OPPO and vivo shipped nearly 20% of the domestic market. In the past, only Nokia, which has a mobile phone market share of more than 30%, has once occupied Samsung, Huawei, Xiaomi, etc. Both reach the ceiling at a 20% market share, and OV is expected to encounter strong resistance at this position.
OPPO and vivo's shipments reached 100 million and 80 million respectively last year. It is rumored that their shipment targets for this year have reached 160 million and 140 million, which requires them to expand overseas and obtain overseas markets. Growth requires patents to protect.
Among the domestic mobile phone brands, the most patented advantages are Huawei and ZTE. The two mobile phone companies have accumulated more than 50,000 communication patents in the communication equipment market for more than 20 years, while OPPO and vivo have been in the past few years. It is also strongly applied for patents, but it is obviously not enough. After the company’s infringement of patent infringement in the Indian market in late 2014, Xiaomi opened a manufacturing plant in India through a large number of patent applications, patent purchases, patrols with Qualcomm and catered to Indian manufacturing requirements. However, it is still only available in the Indian market for mobile phones using Qualcomm chips.
As you can see, OPPO and vivo also reached a patent cooperation agreement with Qualcomm last year. After Qualcomm was punished by China's anti-monopoly, its reverse authorization in China was partially weakened, but it is still valid in overseas markets. OPPO and vivo can use its reverse authorization to temporarily obtain its patent protection in overseas markets.
In fact, Qualcomm also needs to strengthen cooperation with OPPO and vivo mobile phone companies. Among the top four mobile phone brands in China, nearly half of Huawei's mobile phone chips are supplied by Huawei HiSilicon, and the rest are shared by Qualcomm, MediaTek and Spreadtrum. Xiaomi's own chips are also coming soon, only OPPO and vivo. Mobile phone companies' chips are all sourced from Qualcomm and MediaTek. Last year, it was OV's help that enabled MediaTek to achieve record revenue. If Qualcomm can strengthen its cooperation with the two brands of OV, it can drive its own chip shipments while attacking MediaTek's main competitor.
Therefore, the cooperation between OPPO and vivo and Qualcomm is the choice that the situation has forced. Of course, the author believes that OV needs Qualcomm more. This year, their cooperation will be deeper than before and have a profound impact on the mobile phone market.
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