American Chip Manufacturer Rides Chinese Smartphone Growth

With China's smartphone prospects booming, an American technology giant is hoping customization for the local market reaps rewards.

Qualcomm plans to sell its first batch of smartphone chips customized for the Chinese market later this year.

David Tokunaga, Qualcomm's senior director for product management, said at Computex Taipei that Qualcomm's three types of chip sets, which were launched in February 2014, will be first applied to Chinese mobile phones. Tokunaga also said that in the second half of 2014, the company will launch the first batch of products customized for the Chinese market.

Qualcomm's products are mostly used on high-end smartphones like Apple's iPhone. Qualcomm's latest financial report showed that its quarterly operating revenue growth hit the lowest level since 2010, which was mainly attributed to the sales slowdown of high-end smartphone in developed countries. However, sales of cheap smartphones in emerging markets are still increasing.

Tokunaga said as a Western company, Qualcomm has been operating with a Western model in the Chinese market. They plan to start over from now on. Qualcomm needs to be localized if they want real success in China. In the past, all goods were from America; but in the future, all products will be from China and then expand to the world.

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