MediaTek and Qualcomm, the world's top two mobile phone chip manufacturers, have successively released conservative outlook for the future market, highlighting the severe market situation. As the terminal inventory level is much higher than expected, a new wave of chip haggling between mobile phone chips is imminent in order to reduce inventory.

Industry insiders said frankly that in the context of high inflation, consumers' attitudes towards smartphones are mostly to continue to use them when they can, and they do not have to buy the latest products at this time, which will certainly affect the overall sales performance of mobile phones, leading to a sluggish supply chain shipment performance.

According to past experience, once the inventory level is too high, in addition to reducing the chip quantity in the wafer factory, bargaining is a necessary means to clear the inventory.

The outside world pays close attention to the fact that other mobile phone parts and components have been haggled to clear the inventory recently, and the haggling may not be clear, but it will not be clear without haggling. As the market situation of smart phones is more severe than expected, MediaTek and Qualcomm will wait to see who will take the first shot to clear the inventory at an appropriate time. There is a strong smell of nicotine.

After all, after the inventory of existing products has been properly depleted, new products will take over, so that our products will not only kill each other, but also fight against each other, adding more difficult challenges in the cold winter.

In the environment of low market demand and high inventory, it is expected that Qualcomm and MediaTek will release their flagship chips of the next year as originally planned in the near future. Even in the face of short-term headwinds, they should still prepare their product lines, and take the opportunity to gain more market share when demand warms up.

However, new products usually represent a higher or at least equal average sales unit price (ASP). However, industry insiders frankly say that non Apple mobile phones are not popular in the near future. It is a profound knowledge how to price and how much to handle the production volume of high-end, middle and low-end chips.