Published in Mobiles

Asustek misses Qualcomm's Snapdragon 835

by on31 March 2017

ZenFone will be delayed

Asustek will be delaying its its fourth-generation ZenFone until June or July after failing to get its paws on Qualcomm's 10nm Snapdragon 835 processor and not wanting to use the older-generation Snapdragon 821.

According to Digitimes,  the fact that Asustek failed to acquire Qualcomm's supply may prompt Asustek to re-start its connection with MediaTek.

Only Samsung Electronics and Xiaomi have been able to secure Qualcomm's Snapdragon 835 processor supply. Samsung has already announced the Galaxy S8 using the processor, while Xiaomi is ready to unveil its Xiaomi 6 smartphone in April.

But the limited supply means that Asustek and LG Electronics will be forced to wait for three months for the Snapdragon 835's increased production.

Some of the problem was that Qualcomm has offered Xiaomi supply priority and a premium pricing at US$30 per unit (official price is US$45-50) for its Snapdragon 835 processor. This caused one of MediaTek’s biggest clients to defect.

But since Asustek is weaker than Samsung and Xiaomi in the smartphone market, in terms of economies of scale and unit shipments it has to lean on Qualcomm. Digitimes thinks that it might be signally that unless it gets better treatment it might move to MediaTek to regain its ground.

Since Asustek has several high-level executives that have relationships with MediaTek and this might help the outfit re-bridge their partnership.


Last modified on 31 March 2017
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