Core Viewpoint - The competition in the smartphone chip market is intensifying, with Qualcomm and MediaTek dominating the landscape, while domestic smartphone manufacturers face challenges in adopting self-developed chips for overseas markets [1][3][5]. Group 1: Market Dynamics - The smartphone chip market is primarily controlled by Qualcomm and MediaTek, with both companies emphasizing differentiation to maintain their market share [3]. - Qualcomm's self-developed GPU gives it an edge in the high-end smartphone chip market, allowing it to outperform MediaTek despite both using ARM's public core [3]. - Samsung has reduced its reliance on self-developed chips and increased its procurement of Qualcomm chips, contributing over 40% of Qualcomm's revenue [3]. Group 2: Challenges for Domestic Manufacturers - Domestic smartphone manufacturers struggle to compete with Qualcomm in overseas markets due to the performance limitations of their self-developed chips, which mostly use ARM's public core [5]. - Patent issues pose significant challenges for domestic brands, as they have faced multiple lawsuits to establish their patent positions, making them cautious in overseas markets [5][6]. - The strict intellectual property management in Europe further complicates the situation for domestic manufacturers, leading them to prefer Qualcomm chips for their European sales [6][8]. Group 3: Strategic Decisions - Domestic smartphone brands often use both Qualcomm and MediaTek chips, but prioritize Qualcomm for European markets while using MediaTek for emerging markets [6]. - The choice of chip is influenced by various factors beyond technology, including legal and market considerations, which companies must carefully evaluate [8].