Samsung will supply chips to low-end smartphones from Xiaomi, OPPO, and vivo as early as the first half of next year, and may expand to high-end models later.

Samsung will supply smartphone chips to Xiaomi, OV, etc.

Samsung recently announced that it will supply chips for smartphones to Xiaomi, OPPO, and vivo in 2021, including 5nm process chips.

Samsung will supply chips to low-end smartphones from Xiaomi, OPPO, and vivo at the earliest in the first half of next year, and may expand to high-end models later. At present, Samsung chips have successfully integrated into the vivo supply chain. It is reported that one of the reasons why Samsung seeks to supply mobile phone chips to Xiaomi, OPPO and vivo is to ease the pressure of low profit margins. At the beginning of this year, Samsung decided to reduce the supply of chips to its own wireless business unit and turn to Chinese mobile phone manufacturers.

Since the mobile phone explosion a few years ago, Samsung has gradually lost the Chinese market. At present, Samsung’s share in the Chinese smartphone market has fallen to less than 1%. In China Mobile chip market, Samsung also lags behind Qualcomm, MediaTek, and Huawei HiSilicon, and its advantages are mainly concentrated in Memory chips instead of computing chips.

Huawei was once an important buyer of Samsung chips and other components. Affected by the ban, Samsung has not resumed the supply of chips to Huawei’s smartphones. In order to seize the market share vacated by Huawei’s mobile phones, recent domestic mobile phone manufacturers such as Xiaomi, OPPO, and vivo have been exposed to large-scale increase in orders, launching an impact on Huawei in various product positions.

According to third-party data reports, in the third quarter of this year, Huawei occupies the top spot in China’s smartphone sales, followed by vivo, OPPO, Xiaomi and Apple.

Chief Editor’s Comment: Samsung, which has lost the Chinese smartphone market and Huawei’s major customers, has found a turning point in the Chinese market by selling chips to Xiaomi and OV. Samsung’s differentiated treatment of Chinese users in the Note 7 battery explosion basically cut off the possibility of growth in the Chinese consumer mobile phone market, and its only option is to transform and serve the B-end market. The failure of Huawei chips not only gave Xiaomi, OPPO, and vivo opportunities to catch up, but also allowed Samsung to sort out its business in China…

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