HTC Partners ST-Ericsson to Develop Own Processors for Low-End Phones: Qualcomm Left in Cold?

By Jonathan Charles | Apr 24, 2012 10:41 AM EDT

Share This Story

  • Print
  • Email

HTC has reportedly signed a deal, which removes the company's reliance on third-party chip manufacturers. The phone manufacturer has signed a "memorandum of cooperation" with ST-Ericsson - a joint venture between STMicroelectronics and Ericsson - to develop its own mobile chips. What happens to Qualcomm?

Follow us

The chips that HTC will be developing aren't for high-end smartphones. They will run on low-end devices, which will begin shipping in 2013.

Increased competition from rivals such as Samsung and Apple, and a wide portfolio of devices, caused HTC to streamline its devices through the One range: a trio of devices aimed at the high-, mid- and low-end consumers. The devices also launched with Sense 4.0, HTC's custom skin. While Samsung makes its own chips for its high-end devices, the low-end market is relatively untouched and could give HTC an advantage if it uses its own chips. Nokia has tried to tap into the market, but has faced increased competition from Chinese manufacturers.

Some have questioned the rationale behind using its own chips in low-end devices, as HTC could use established chips for a low price. Gigaom seems to think that using first-party chips is evidence of the company not quite figuring out "how to differentiate its phones from others in the Android market."

Meanwhile, HTC isn't the first company to drop Qualcomm due to issues with the company, as Samsung is rumored to be dropping the company and instead will offer Exynos quad-core processors that could debut in the Samsung Galaxy S3 in May.

In the high-end One X smartphone, HTC utilises Nvidia's quad-core Tegra 3 processor in Europe, while using the Qualcomm Snapdragon S4 processor for 4G devices in North America and other regions. Apple uses its custom A5 chip; the latest version - the A5X - featured in the iPhone 4S.

Nokia has already struck a deal with ST-Ericsson, announcing the deal back in November 2011 for all of its devices.

HTC's move comes after a $300 million stake in Beats Audio, which is being integrated into all of its products.

When contacted, HTC said it doesn't comment on rumor or speculation.

(reported by Jonathan Charles, edited by Dave Clark)

 

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Featured Video : Intel Pocket Avatars

Join Our Conversation

Smartphones
Verizon HTC One RemixVerizon HTC One Remix (One Mini 2) now on sale, $49.99 on contract
Apple planning two fall launch events: iPhone in September, iWatch in October
Sony Xperia Z3 may launch as minor upgrade compared to current flagship
Samsung Galaxy Alpha may not be the metal beast you’re waiting for
Tablet / Laptop / PC
Dell Venue 7 and Venue 8Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon LogoAmazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC LogoHTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google DowntimeGoogle blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
PayPal iOS appPayPal for iOS update brings loyalty card support, other features and enhancements
Facebook Slingshot now official to challenge Snapchat – What makes it stand out?
Pinterest update brings Guided Search to desktop users (VIDEO)
SwiftKey goes free on Google Play, boasts great new features & improvements
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics