MediaTek rival rumored on Xiaomi supply chain
Taiwan News, Staff Writer
2014-07-17 11:37 AM

Xiaomi, the Chinese smartphone maker, will kick off a new product launch on July 22 for its two 4G-equipped Red Rice models. However, these two new models have been recently rumored to carry Qualcomm chips instead of its longtime partner MediaTek’s (2454). But an industry source familiar with the matter said that Xiaomi didn’t turn away from MediaTek on the Red Rice 4G smartphone, explaining that the phone maker has just taken on a new strategy of increasing supplier diversity and Qualcomm got the call.

Xiaomi’s CEO Lei Jun recently preannounced the launch of new product Mi4 on July 22. Previous Red Rice models carried MediaTek chips, which encountered supply shortages thanks to quick sales of Red Rice. To tackle the shortage problem and to ensure a smooth shipment of new phones, Xiaomi also adopted a Qualcomm solution and its partnership with MediaTek is still ongoing on 4G phones.

As industry source is quoted by the media saying Qualcomm sees 70 percent growth in its chip shipment to China’s market thanks to mainland phone makers’ 4G initiatives.

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