MediaTek has taken a bit of a beating lately when it comes to high-end LTE-capable chipsets. While it released its first high-end octa-core, LTE-capable chipset in the third quarter (the 32-bit MT6595), it has still fallen behind market leader Qualcomm. Analysts expect this to continue through 1H 2015, as MediaTek discounts its chips aggressively to make up for its less cost-competitive solutions. Nevertheless, the MT6595 has done much to make up for an otherwise lackluster quarter for the chipset manufacturer, and MediaTek’s recent guidance reflects the fact that the mid to high end is a good, but not great, segment for the company at the moment.

Surprisingly, it is on the low end that MediaTek has been struggling. Qualcomm’s current Snapdragon 410 has reached an average selling price of around US$10, and the low-power LTE-capable Snapdragon 210 is also expected to be at or below US$10 by mid-2015. In fact, the 210 is expected to be targeted at smartphones as inexpensive as US$75. MediaTek’s existing competitor is between 15 and 20 percent more expensive than Qualcomm’s 210. What this means is that for the first time in a long time, MediaTek may be at a competitive disadvantage against Qualcomm on the low end.

This may mean, however, that white box device makers may have some leverage when it comes to negotiating deals with the company. With Qualcomm expected to make aggressive inroads into the low-end smartphone market, smaller manufacturers may be able to gain a bit of an upper hand when it comes to pricing negotiations. The alternative for MediaTek may be significant price discounts on already low-margin chips if the company wants to maintain its market position.