Sina Technology News, April 14th - Qualcomm's Global Marketing Vice President Dan Novak recently visited China and was interviewed exclusively by Sina Technology on the future development of the wireless communications industry, as well as how Qualcomm views the tablet market.
During the interview, Dan Novak revealed that Qualcomm will make a strong push into the tablet computer chip market this year. Currently, 20 tablet companies are using its Snapdragon processor, including HP.
Qualcomm initially announced the launch of its latest dual-core processor in February, stating it would primarily target the tablet market. Dan Novak, in an exclusive interview with Sina Technology, said that the tablet sector is indeed very interesting. Qualcomm has always believed that mobile computing terminals which can locate users, stay online forever, stay connected forever, and are larger than phones, represent a major future trend.
Novak disclosed that currently there are 75 commercially available phones using Snapdragon chips on the market, with more than 150 additional smart phones or tablet computers and other intelligent terminals under design. Over 20 partners are designing tablets.
However, Qualcomm also faces many competitors. At the beginning of this year, Intel announced the establishment of a tablet and netbook device division. But within the industry, it is generally believed that Qualcomm's main competitors in the tablet chip market will be Texas Instruments and Nvidia’s similar products. Texas Instruments announced in February the launch of its latest mobile processor OMAP 5, which is also a dual-core processor; while Nvidia's Tegra 2 processor leads in the tablet market, with its market share increasing nearly 50% since the end of December last year. Intel's products are considered to be a weaker version of PC processors, with higher energy consumption, but Intel is expected to release new mobile processors in the first half of this year to attempt to reverse the situation.
Novak revealed that Qualcomm has launched a quad-core chip series. The next generation of Snapdragon chips will support more smart terminals and more interconnected terminals, integrating a variety of rich functions, excelling in graphics processing and chip processing capabilities, while also having low power consumption.
The following is the full transcript of the interview:
Host: Hello netizens. Qualcomm is a globally renowned wireless chip company. The 3G and 4G standards promoted by Qualcomm are the driving force behind our wireless communication industry. We are honored to have an important guest today, Qualcomm's Global Marketing Vice President Dan Novak. As the world is currently experiencing rapid development of 3G and the impending arrival of 4G, we are fortunate to invite Mr. Novak to discuss Qualcomm's views on this industry and some of their practices.
Currently, the telecommunications industry is still in a period of high-speed development, especially our wireless communication industry. Now there are hundreds of 3G operators globally. After two years of commercial use in China, it has reached a very high level. We would like to ask what Mr. Novak believes will be the growth drivers for the future of the wireless communications industry, and how Qualcomm views the future development of this industry?
Dan Novak: Now, the global telecommunications industry is going through a very exciting time. From the data, there are already 5 billion wireless users globally, of which 1.2 billion are 3G users. We can see that the growth of 3G is actually very significant. Some analysts predict that within three to four years, the number of global 3G users will reach 3 billion. Now, global wireless communications users do not just make phone calls anymore; they are actually constantly interacting with friends via their phones, experiencing various applications through the internet.
This is actually very consistent with Qualcomm's vision of mobile communication development. In the past 25 years, we have been committed to connecting people around the world through wireless connectivity, allowing them to experience not only the charm of voice calls but also use the internet through their phones and experience a wide range of multimedia applications, including the currently popular social networks.
Host: At the Mobile World Congress in February this year, Qualcomm launched the next generation of Snapdragon mobile chipsets, including dual-core and quad-core chips. We would like to ask about Qualcomm's progress in mobile chips? Currently, the global mobile phone chip market is mainly dominated by dual-core chips. Why does Qualcomm develop quad-core mobile chips?
Dan Novak: We see that the global development trend of Snapdragon is very good. The next generation of Snapdragon chips will support more smart terminals and more interconnected terminals. It integrates a variety of rich features, excels in graphics processing and chip processing capabilities, and also has very low power consumption. Snapdragon has received a lot of attention and popularity from many mobile phone manufacturers in the global market. Currently, there are 75 Snapdragon-supported mobile phones already commercially available on the market, and more than 150 smartphones or tablet computers and other intelligent terminals are under design.
We can see from the MWC news that the dual-core and quad-core chip series launched by Qualcomm is actually a response to the anticipated future consumer demand trends. These chips integrate very high 3D graphics processing functions. In terms of chip processing capability, they are also very powerful. This is the future development trend and evolution roadmap of Snapdragon. Dual-core and quad-core processing chips for mobile phones are not only a long-term route evolution diagram designed for the future development of chips, but mobile phone manufacturers indeed have such demands. Through these dual-core and quad-core chips, manufacturers can provide better mobile terminal consumption experiences and usage experiences to their users.
Snapdragon has a wide range of applications in areas such as applications, games, and augmented reality. Snapdragon chips are small but very powerful and consume very little power. Qualcomm hopes that through this tiny chip, consumers can fully experience all kinds of applications and mobile experiences they hope to obtain.
Host: How much smaller is the Snapdragon chip compared to ordinary CDMA mobile phone chips?
Dan Novak: In terms of size, it is roughly the same. However, we have been dedicated to integrating more connectivity and functions into the Snapdragon chip, such as GPU, CPU, GPS, etc., so overall its size is getting smaller and smaller. And we have been working hard to quickly integrate more functions into this increasingly smaller chip. While ensuring low power consumption with more rich functions, this is our strategy for developing highly integrated chips.
Host: This year is called the "year of tablet computers," as we see many manufacturers launching tablet products. So we would like to ask how Qualcomm views the tablet market and what actions will it take in terms of tablet chips?
Dan Novak: This is a great question. The tablet market is indeed very interesting. Qualcomm has always believed that mobile computing terminals that can locate user positions, stay online forever, stay connected forever, and are larger than phones, represent a major future trend. There is indeed a lot of interest in tablet computers, and among the 150 Snapdragon terminals we are designing, over 20 partners are designing tablet computers. Tablet computers bring the always-on, always-connected state of the user's favorite smartphones to tablets. They also have touch screens, larger screens, and excellent user experiences - you can browse the web, use social media, send emails, play games, etc., better through a tablet. Qualcomm is pleased to work with manufacturers to continuously introduce tablet products to the market.
Host: This April marks the second anniversary of the commercial launch of 3G in China. How do you view the current development status of 3G in China? Is Qualcomm also a big beneficiary in this process? On another note, could you please tell us about any recent developments in Qualcomm's cooperation with Chinese operators? I see that Qualcomm is collaborating with all three major operators in China.
Dan Novak: The Chinese market is very exciting. With the deployment of 3G in China, we can see three very competitive operators providing a variety of terminal experiences to the market. This is a very good thing for consumers as they have many choices in mobile terminals and services. As one of the vendors, we have been looking forward to the development of 3G in China for many years. Therefore, we are very excited to see the deployment and development of 3G in China. Currently, the development of 3G in China is very remarkable. The three operators are promoting 3G further among people in their own ways. Qualcomm sees very good development trends and opportunities in this market. Qualcomm has good relationships with all three operators, and we have been actively helping them develop new technologies and assist them in completing network and service deployments.
Host: This year, Chinese operators are heavily promoting smartphones. The focus of 3G phones is on smartphones rather than feature phones. To meet market demand, Chinese operators are vigorously launching smartphones priced at around 1,000 yuan, which requires Qualcomm to provide support in terms of chips. So we would like to ask what actions Qualcomm will take in supporting 3G smartphones priced at around 1,000 yuan? Additionally, how does Qualcomm view the prospects of mid-to-low-end smartphones? For a company like Qualcomm, launching chips at a very low price may not offer high profit margins. Is Qualcomm willing to do this?
Dan Novak: The market segmentation of smartphones can be seen in many markets around the world. Smartphones are no longer expensive mobile terminals. Now, we can see that the smartphone market has been segmented into various price ranges, including high, medium, and low-end. Consumers can choose different smartphone terminals with different functions based on their interests and preferences, and now there are more product options available in the market. From Qualcomm's perspective, this is a very good thing. Qualcomm has always been committed to supporting various levels and types of terminals. Smartphones are undoubtedly the fastest-growing product category globally, which aligns with our vision for the future.
Qualcomm believes that phones should not only be used for making calls and sending text messages but should also provide advanced graphics processing capabilities and rich multimedia content, as well as support social networking and other functions. Qualcomm is pleased to see that the smartphone market is being segmented, and we are happy to support our partners in introducing more varieties and levels of smartphones to the market.
Host: I have two final questions. One is that Qualcomm has achieved tremendous success in the 3G era. What actions will Qualcomm take in the 4G era? Could you give us an introduction? For example, regarding FDD-LTE chips for 4G and TD-LTE, which is particularly important in China, how prepared is Qualcomm for both aspects? China is currently conducting TD-LTE tests.
Dan Novak: I am glad you asked this question. In the past few years, LTE has been one of the largest areas of investment for Qualcomm, which is consistent with the growing demand for data services from an increasing number of users. Globally, due to the increase in spectrum resources, 4G will be a future trend because it can meet the growing demand for data services from consumers. As we mentioned earlier, people want to use higher-capacity data services and do more things through mobile terminals.
As you correctly stated, Qualcomm maintains very good relationships with many vendors in the 3G field. LTE is the next-generation wireless technology that is about to be widely accepted, and we are in a very good position to continue supporting operators in deploying LTE networks. Currently, there are 17 LTE networks being deployed globally, and more than 100 operators have committed to deploying LTE networks. Qualcomm places great emphasis on LTE, and we believe that our multi-mode LTE technology is a good complement to 3G networks. For example, in densely populated areas like Beijing, a large number of consumers hope to enjoy good data services. Now, through operator deployment, consumers can directly access data services through 3G networks, and with the future deployment of LTE, consumers will be able to enjoy excellent data services on their mobile terminals.
Host: The last question is that starting from two years ago, China listed the Internet of Things (IoT) as a very important development area. How do you view the development of the IoT industry? Is Qualcomm also researching and developing terminal chips for IoT and launching related products?
Dan Novak: Qualcomm has always believed that wireless connectivity can enable everything to be interconnected, which is a very good thing. The trend of connectivity is not only reflected in mobile phones, but we can also see the interconnection of mobile phones, consumer electronics, and mobile computing terminals. Their connection, especially wireless connection, will bring better experiences to users. Through the development of IoT, or Machine-to-Machine (M2M), we can see that the development trend we have been committed to is becoming a reality. Smart grids, mobile healthcare, and other fields become more powerful and efficient through wireless connectivity. We have always been cooperating with many partners to find the best possibilities for terminal interconnection.
We can see that using M2M technology can achieve mobile terminal tracking, such as tracking vehicles on the road; improving global energy efficiency; and helping regions that cannot provide good medical services allow people there to access higher-quality medical services more conveniently.
IoT technology is a field that Qualcomm values very much, and it is becoming increasingly important globally. We have previously mentioned that Qualcomm not only provides high-end chips for the market but also vigorously develops mid-to-low-end chips for the mass market. For example, these lower-end chips can be applied in thermometers at home, and by setting up sensors on your body, they can monitor your health condition and transmit the measured physical information to hospitals or medical personnel.
Currently, we are in a very good period of IoT development, and we hope to seize this opportunity together with various manufacturers and improve people's future lives through wireless connectivity technology.
Host: From 3G to 4G, from mobile phone chips to tablet chips, to IoT chips, it feels like Qualcomm is weaving a spider web, encompassing all important mobile communication products into the chip domain. I admire Qualcomm, and due to time constraints, our interview must come to an end. I sincerely wish Qualcomm continued success. Thank you to all the netizens who actively participated, and this concludes our interview. Thank you, goodbye.