MediaTek Evolves

“NavInfo plans to wholly acquire AutoChips, Inc. (hereinafter “AutoChips”), a Chinese subsidiary of MediaTek, for a purchase price of US$600 million. Completion of the above is scheduled for 4Q16, subject to various relevant regulatory approvals. Concurrently, MediaTek plans to invest in or co-invest with NavInfo, an amount of no more than US$100 million, to cooperate strategically in the fields of Automotive ICs and the Internet of Vehicles (hereinafter “IoV”) “
See MediaTek Announces Strategic Cooperation with NavInfo in Expanding Automotive IC and Internet of Vehicles Markets – MediaTek
For years we’ve read that MediaTek has struggled to make money in smartphones. Well, they are diversifying into automotive Internet, navigation and entertainment. They are cooperating with Navinfo who have been into navigation for years and have a foothold with several Asian and European automakers. I’ll bet there is a bigger profit-margin in an automobile than a smartphone. I see that every time I take my car in for service.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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2 Responses to MediaTek Evolves

  1. oiaohm says:
    Dr Loser depends on car and country how much you have to pay for the software.

    1996 (in the US) or 2001 (in the EU)
    Key dates in those countries. So after 1996 US or 2001 EU diagnostic information out of car has to conform to standard. Now if you are not in the countries covered by that and are working on a car you can be in ouch paying vendor for software and some strange custom plug and interface. Mind you in US and EU you still might be in ouch paying for book to understand the error code.

    The standard usage requirement in US and EU also in both areas mandate as car owner or person approved by car owner can plug onto that port with conforming device without voiding warranty.
    Yes some insurance companies use this with young drivers to give them a lower cost insurance by tracking their driving actions by the cars computer system.

    So what your country laws are and how modern of car have you have to look into Dr Loser. Yes the diagnostic cost and restricted service issue can be a good reason in some areas to get rid of early generation computer controlled cars or fit after market system that is conforming either way fixing the limited service options. If you car is standard conforming and you are being billed extra for special software diagnostics you are basically being ripped off or service person you are choosing is being ripped off. Hey while idiots pay someone will exploit them.

  2. Dr Loser says:

    It’s an interesting thought, Robert, but no, there is no such better margin. (At least beyond the short term.)

    Take your car into service, you pay for standard and regulated parts, generally from the original supply chain. You also pay through the nose for modern diagnostics — I tend to believe that these are based on Linux machines, incidentally. And then you pay for certified mechanics.

    (As opposed to uncertified teachers, but I will leave that naughty and irrelevant thought to one side.)

    In-car entertainment, in a scant number of years, is going to be plug-n-play.
    Which is interesting, because that’s what you normally espouse for IT.

    What makes you think this time will be any different, and why should MediaTek get a free ride on bloated margins, just because they failed to produce the smartphones you wanted at a commercial price?

    The world can, and does, build its own ICE systems, Robert. It’s all good. Chuckle. And so on.

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