Spreadtrum, Samsung in Latest China 3G Model 展讯与三星再度联手开发中国标准3G智能手机
After surviving a short seller attack last year, cellphone chip maker Spreadtrum (Nasdaq: SPRD) has taken the latest step in its drive to become a specialist in smartphone chips for use with China’s homegrown 3G standard, TD-SCDMA, by co-developing a second model with global giant Samsung (Seoul: 005930). (company announcement) Samsung’s roll-out of the Galaxy Note GT-I9228, using a Spreadtrum TD-SCDMA chip, is the Korean company’s second such model since last September, and signals the companies are forming a strong partnership for phones based on the 3G standard being used by China Mobile (HKEx: 941; NYSE: CHL). Now, of course, the big question will be whether China Mobile will start to promote TD-SCDMA service more aggressively, following a disappointing 2011 that saw it lose steady share in the 3G market to rivals China Unicom (HKEx: 728; NYSE: CHU) and especially China Telecom (HKEx: 728; NYSE: CHA). Spreadtrum shares have gone on a roller coaster ride over the last year, partly due to the inherent risk of investing so much in a technology with no track record and one that could ultimately see only lukewarm sales. Its share plunged in July after a short seller attack questioning an inventory buildup as the company broadened its product line as part of its TD-SCDMA bet. It ultimately survived that attack and its shares more than doubled from their lows at that time. But since November its shares have again lost about half of their value, due at least in part to disappointment about China Mobile’s lackluster promotion of 3G. Of course, part of the problem for China Mobile has been a lack of exciting smartphone models to run on its 3G network, so the introduction of 2 Samsung TD-SCDMA models should help address that problem. China Mobile has also sent out its own recent signals indicating it will make a stronger push in 3G this year under new management, though we have yet to see much real results of that. (previous post) If you’re a Spreadtrum investor, you’re most likely going to be closely watching China Mobile’s 3G subscriber numbers closely this year, as the chip maker’s stock price is likely to move in step with how quickly the network develops.
Bottom line: Spreadtrum’s latest tie-up with Samsung affirms its commitment to TD-SCDMA 3G standard, putting it at the mercy of China Mobile’s promotion of the untested technology.
Related postings 相关文章:
◙ China Mobile 3G: Where Are the Subscribers? 中国移动3G：订户在哪里？
◙ Spreadtrum, Mediatek in Cheap Smartphone Plays
◙ Spreadtrum Takes Smart Gamble on China 3G
