MediaTek enters Apple's supply chain and will provide chips for Beats headphones

MediaTek chips are favored by Apple because of their high cost performance.

According to Taiwan media reports, MediaTek has entered the supply chain of Apple’s 100%-owned headset manufacturer Beats, producing headset chips for the company, and is expected to start shipping in February and March 2021.

The report also said that MediaTek used to focus on non-Apple markets. This is the first time the group has established a cooperation with Apple.

In this regard, MediaTek said it “cannot comment.”

台媒:联发科打入苹果供应链,将为Beats耳机提供芯片

It is understood that in the past, the Beats headsets were equipped with chips independently developed by Apple. This time, the use of MediaTek’s headset chip products is mainly considering the advantages of MediaTek chips with high cost performance.

It is reported that Luoda Technology, a subsidiary of MediaTek, has been committed to developing highly integrated circuits for wireless communication for many years. Its wireless Bluetooth headset (TWS) chip is highly recognized by users. Its customer base includes well-known manufacturers such as Sony, Pioneer, and Philips. Therefore, Airoda’s chip supply is very stable. As early as 2019, Airoda Technology’s single-month shipment of chip solutions to various TWS headset manufacturers reached 10 million.

It is precisely because of the guaranteed reputation, stable shipments, and the historical cost-effective advantage that MediaTek has won the favor of Apple, the “critical” customer.

Some insiders analyzed that this entry into the Beats supply chain is of great significance to MediaTek.

First of all, starting with the iPhone 12 series, Apple no longer randomly comes with earphones, but earphones are the “just need” of every mobile phone user. Apple’s own AirPods are wearable products with a higher unit price, and the market is relatively small.

On the other hand, Beats earphones have a broader market prospect because of their large price range, ranging from a few hundred yuan to thousands of yuan, and users have a wide range of choices.

Earlier, Apple launched Beats’ latest affordable neck-mounted Bluetooth headset “Beats Flex” at the new product launch. The price is only $49.99 (approximately RMB 399). The affordable price makes Beats a part of the “fruit powder”. Preferred.

It is foreseeable that once MediaTek obtains this large order, it will definitely be able to get a very substantial income.

Secondly, when Apple adopts the chips produced by MediaTek on the headset, it may choose MediaTek chips in other Apple products in the future.

Therefore, for MediaTek, it is a rare development opportunity to catch the “express” of Apple.

Author: Liu Shuang