There are two key issues to Xiaomi getting involved with CPUs. PadNews has an analysis, reprinted from “21st century business Herald” [Google Translate].
1) Patent protection. There are issues regarding licensing fees that have to be paid to major patent holders such as Qualcomm, Nokia (now Microsoft), and even Samsung.
2) Lowering phone prices. Here in the U.S., we find China tech to be bargain priced. In the majority of the world, it’s still priced too high in places such as India and other developing nations.
Bing Translator does the best job on this paragraph:
Just a year ago at the Beijing Forum on Microelectronics, Lei has publicly called for: chip industry should learn from the Internet free of charge, in accordance with the cost price, “Why sell thirty or forty dollars, instead of three or four dollars? If the chip free, millet high-end cell phones only 500 Yuan.” The Lei predicted that the next 3-5 years, was” certainly is based on sand, the chip company sold chips and achieved great success. ”
At that time, price 699, 799 USD red rice has just released, Lei presented at the event: “I did not expect red rice is so successful. Low end of the market there was so big, so strong market demand.” Red Rice’s success in bringing the Lei is determined in the low-end mass market a go.
Boldfaced emphasis added by me.
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