Every big company tries to disengage from too many suppliers in order to gain more control over its products. This is more obvious in the CPU area: Apple A-Series, Huawei Kirin, Samsung Exynos. And now, Xiaomi is ready to enter the business with its own SoC codenamed “Xiaomi Rifle” . The rumor is valid enough and it is said that the SoC will be unveiled in May as it was shared to the Korea Times by an official at a component partner of Xiaomi.
Unlike the Samsung Exynos for example, “Rifle” will be base on ARM CPU core designs and it is said that it will target the low-mid segment and not the premium for the time being. Stock market analysts claim that we will see a turn to affordable, value-for-money devices that offer more specs at a low price with software optimizing playing a key role. In the years to come, demand for low-cost processors will increase and this is a product category that not only Xiaomi, but others like Lenovo, ZTE and LG want to capitalize in.
Smartwatches, TV’s and other equipment will carry Xiaomi’s SoC in the future, so Xiaomi can do away with the dependence on other manufacturers such as Qualcomm and Mediatek whose SoCs are being used in all of Xiaomi’s devices till now.
Qualcomm and Mediatek hold the biggest share in mobile SoCs and by OEMs developing their own solutions, could be a big hit in their market shares, especially in the low-budget segment and may as well force them to cut down on patent royalty rates in order for them to maintain their market share.