It sounds like MediaTech in handsets works the same way they worked in the DVD market. Provide a low cost reference design with little customization but rapid time to market. It's a good way to get market share but with little to no margin and no way to hit Tier 1 customers.
I don't see how they get out of that hole without developing innovative new technology.
MTK will never get to the next level.
reason is simple: it don't get the resources.
it's located in a tiny island and most of their talents has been soaked by Fabs.
The real qualcomm replacement will come from ... china in ? years.
With the products lining up in wireless, digit TV and optical storage, the company will likely grow stably in 2011 and, highly likely in the next couple of years. A ground breaking innovation will take it to next level. The question comes to whether the executive management and investors are comfortably living with the growth or willingly fighting to become number 1.
It is a very general development path of Taiwanese fabless house in the consumer market. They are not investing enough in innovative core technology but just focus on cutting cost by leveraging performance and higher integration. This is expected one day competition come with a even lower price tag with lower labor cost. If MTK really wants to gain higher margin and get into tier 1 market, it needs some ground breaking technology so that they can't be caught up easily by Chinese companies.
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