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Huawei, Apple, and Lenovo Cooperate against Qualcomm, Xiaomi and OV Wait and See

Source:Iris Liang Time:2019-1-7 11:32:29

Yesterday, the California Court of the United States opened a trial on whether Qualcomm's business model involved monopoly, while Huawei, Lenovo, MediaTek, Intel, and Apple successively testified in court to try to convince the court that Qualcomm did have a monopoly in its cooperation with them. Qualcomm’s “Qualcomm Tax” has long been infamous, and this time it’s been a “multi-line injustice” by a group of tech giants.

According to reports, Huawei’s senior legal counsel said in court that Qualcomm had threatened Huawei. If it did not sign a licensing agreement, it would stop supplying chips if it paid the license fee on the basis of spending money on chips. What's even worse is that if Huawei buys chips from other chip makers, then it needs to pay a higher so-called “loyalty tax” like Qualcomm to obtain its patent license on CDMA.
In addition to Huawei, smartphone giants including Apple have also suffered the same "threat", and domestic manufacturers such as Xiaomi, OPPO, and vivo have also struggled under this unequal agreement.

What is surprising is that in addition to Huawei, Lenovo also testified in court, proving that Qualcomm has always been using this hegemonism to implement the squeeze. Previously, the relationship between Lenovo and Qualcomm has been very embarrassing, including the 5G voting event that caused an uproar six months ago. Both of them seem to have an ulterior secret agreement between Lenovo and Qualcomm. For example, there is news that Lenovo In order to get the Qualcomm 855 chip launch, and choose to support Qualcomm on the 5G standard vote. This time, Lenovo did not hesitate to fight back, and he did not hesitate to rip open his face with Qualcomm. Presumably, he could not bear the hegemony of Qualcomm.

Then why do other Chinese manufacturers such as Xiaomi, OPPO, and vivo do not take this opportunity to strive to break Qualcomm? In fact, this is related to the strength and strategy of each vendor.

For example, Huawei, which already has a relatively mature Kirin chip on the CPU chip, already has a balong chip on the baseband chip. It is completely self-sufficient to purchase chips from Qualcomm. Huawei’s appeal is to bypass Qualcomm. The above patent barriers such as CDMA can at least allow Qualcomm to collect less money. Therefore, Huawei dares to stand up and face it with Qualcomm.

Lenovo, its main business is not on the smart phone, but on the notebook computer, the market share of its smart phone can almost be neglected, and under the Qualcomm layer of exploitation, Lenovo's smart phone business is sure It is not profitable. Under the current four giants in China, Lenovo’s smart phone road is very difficult to go. The chip of its main business notebook computer is more from Intel, so this time stand up and tremble with Qualcomm, does not rule out the impact of lobbying behind Intel.

However, millet, OPPO, vivo and other manufacturers are different. Smartphones are undoubtedly their most important products, contributing more than 90% of revenue and profits. They can't be guilty of Qualcomm because Huawei has its own It replaces the products of Qualcomm chips, and these manufacturers do not have this strength.

Some people say that since Huawei can produce chips, cann't Xiaomi, OPPO, and vivo turn to Huawei to buy chips to replace Qualcomm? However, it is not that they are not willing to buy, but that Huawei is not willing to sell. Huawei’s positioning of its chip business has always been exclusively for its own mobile phone products. This aspect is to avoid rushing with Qualcomm and causing conflicts. On the other hand, It is also to establish competition barriers for their own mobile phones. It can be seen that with the development of China's social economy, the competition of enterprises has changed from price war to technical competition. Enterprises can only have a place in the industry if they master their own core technologies. Just like SEKO Machinery's large-diameter stainless steel pipe black annealing furnace, it adopts rotary upper and lower tubes and induction water shower cooling system, which is the first design in China. One of the process problems that offline annealing equipment needs to solve is the "port effect." If the ports between the pipes are not well connected, the ports will melt after heating at high temperatures, resulting in unqualified products. Our equipment can control the conveying speed in stages, and the unique “chasing” process makes the front and rear pipeline ports highly connected.

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Iris Liang
SEKO Machinery & Technology Co., Ltd
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Mobile phone: 13420628677
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