Taking a lead from the success enjoyed by the likes of Apple and Samsung, where producing SoCs in-house has allowed them greater flexibility and freedom, Sony and LG are set to try their hand at developing and manufacturing smartphone application processors in-house. Having your own SoC on board allows smartphone players to add on features as well as control a lot of features without having to go with the capability of the readymade chipsets available from third party vendors.
So far, Sony and LG have depended upon the likes of Qualcomm and MediaTek to provide them chipsets for their smartphones. While, both Qualcomm and MediaTek have a wide range of chipsets which pretty much fit any requirement that these devices have, where the ball gets dropped is when manufacturers want to introduce a new groundbreaking addition to the processor, like a co-processor for health tracking and the said chipset from the third party is not able to support it. Not just that, the pain of paying extra margins and acquisition cost all add up which means that the manufacturers do not have the complete control over the pricing of the devices the way they would want to.
The report states that as early as 2016 is when we can start to see devices with self-made APs from these manufacturers starting to appear, which will already be a bit of a concern for the likes of Qualcomm and MediaTek. APs are not the only component of smartphones that brands are looking to make in-house, as stories are filtering in that LG is also working on a payment solution, like Apple Pay in order to empower its customers more. Looks like we are looking to move towards a more vertically integrated world where the manufacturer of the smartphone is trying to get away with as many third party dependencies as possible. Looks like Apple did teach them all a lesson, didn’t it?