Qualcomm has faced competition in mobile chips from Samsung - Vee News Live

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Tuesday, January 22, 2019

Qualcomm has faced competition in mobile chips from Samsung

Qualcomm has faced competition in mobile chips from Samsung
Qualcomm didn't have enough power to hurt competition in the mobile chip market, one of the company's experts testified Tuesday.

Tasneem Chipty, an expert in competition policy and antitrust economics, pointed to instances where Qualcomm did things like cut chip pricing in response to strong MediaTek processors hitting the market or Intel possibly winning business with Apple.

That helped Qualcomm win business, she said, but it didn't mean the company was anticompetitive.

"Qualcomm doesn't have sufficient market power to coerce OEMs [handset makers] into onerous business terms that would rob them of billions of dollars," said Chipty, who runs her own Boston-based consulting firm, Matrix Economics, and has testified and consulted for the US Justice Department on antitrust issues in the past.

She noted that Qualcomm actually lost 50 points of market share in premium handsets from 2014 to 2017 while rivals such as MediaTek, Huawei, Samsung and Intel have been gaining.

As of March 2018, all of the new, premium handsets from Apple and Huawei used chips from companies other than Qualcomm, while only 35 percent of Samsung's premium handsets used Qualcomm modems, Chipty said.



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