MStar & Mediatek vying for Nokia’s 2G biz??

What happens when two local companies fight for the same pie? And when that pie has a component from a “once market leader, now floundering handset maker”? And when one of the pie contestants is also gnawing the market share of this “once market leader, now floundering handset maker”?

Well, speculations abound!

MStar and Mediatek,the two Taiwanese chip makers for mobile handsets are vying for Nokia’s 2G phones’ biz - a volume estimated to be around 285 million in 2013.

Mediatek made its prolific rise in handset chip biz by supplying chips to the shanzai/white box handset makers in China. By doing so, it eroded Nokia’s market share in that segment (of course, the other end of the spectrum was eroded by Apple, Samsung and the likes!)

MStar steered clear from this segment and has supplied customized chips to Samsung and LG for higher end mobile phones. Perhaps, these will steer Nokia’s biz towards them…

Lately Mediatek has been shedding it’s “shanzai market” tag and moving up the value chain – Spreadtrum may have a lot to do behind this move!

Interesting times ahead for these sparring compatriots!

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