MediaTek Inc (聯發科), which supplies 40 percent of the mobile phone chips made in China, yesterday unveiled its latest 4G long-term evolution (LTE) octa-core system-on-chip (SoC), paving the way for the company to ship the chip in the second half of this year and compete with rival Qualcomm Inc.
“This announcement should allay recent market fears about MediaTek missing out in China due to a lack of LTE solution,” Credit Suisse analyst Randy Abrams said in a research note yesterday.
The new system, dubbed MT6595, will “form the new top of MediaTek’s product stack and reach a US$30 price point, which is three times higher than its smartphone average selling price,” Abrams said.
MediaTek has not achieved this price level before, Abrams said.
With the new MT6595 chip, Abrams expects MediaTek “to fill out its product line with mid-to-high end dual and quad-core SoC with LTE for availability later this year.”
“MediaTek is focused on delivering a full-range of 4G LTE platforms and the MT6595 will enable our customers to deliver premium products with advanced features to a growing market,” MediaTek Smartphone Business Unit general manager Jeffrey Ju (朱尚祖) said in a statement.
Abrams maintained his “out-perform” rating on MediaTek with target price set at NT$500, implying a 19 percent upside from the stock’s closing price of NT$419 yesterday.