In an effort to strengthen its ties with mobile device companies in China, QUALCOMM, Inc. (NASDAQ:QCOM) has set up a new unit in the country. The dedicated team will give Chinese vendors backing as they endeavor to increase their sales levels in foreign markets.
The company’s CEO, Steve Mollenkopf reported that despite the antitrust issues in China that led to a hefty $975 million fine, customers in the country continue to exhibit cooperation. Qualcomm had to reduce the number of loyalties collected from the Chinese vendors following the anti-trust investigations. But the market is still ripe as evident by surveys.
Qualcomm China’s Vice President, Jeff Lorbeck said that the new offices set up in Shenzhen will give Chinese mobile phone manufacturers the boost they need to break into international markets. The Chipmaker will assist by providing chips for the devices manufactured by the companies in the contract. The deal will be advantageous, or the Chinese phone companies because the QUALCOMM chips are well known for upholding great quality performance. That means the devices will have higher processing capacity and thus increase the chances of preference among mobile device enthusiasts.
Some Chinese manufacturers such as Xiaomi and Huawei already have a well-established presence in the international front. Qualcomm’s new venture is expected to create an avenue the upcoming manufacturers to go international. The chip company has so far invested over $150 million to assist these upcoming manufacturers and vendors.
The QUALCOMM Snapdragon chips are rated as one of the best processor chips in the mobile industry. The deal means a lot for the future of China’s homegrown mobile phone industry. China is also reputable for producing very affordable devices. However, most of the time the phones are usually not characterized by the best performance.
Hopefully, the new devices will maintain their affordability despite the new venture. It does, however, guarantee that the quality of devices manufactured by Chinese vendors will improve. Additionally, this new deal will boost global market competition.