Xiaomi Joining Other Manufacturers, Breaking Up With Qualcomm Building Their Own Chip; Qualcomm Is On The Brink Of Collapse?

It can't be denied that every smartphone manufacturers all throughout the year, have become quite dependent on Qualcomm company. But recent reports suggests that Xiaomi is now making its way breaking the tie with Qualcomm and thinking of finally getting away as they have been reportedly building their own chips.

Just like the giant manufacturers who have been developing its own chips, Xiaomi is now following the league and has an idea of building its own. Samsung, Huawei, and Apple are independently making their own chips as they have long been away from Qualcomm, Wall Street Journal has reported.

The recent news pertaining to Xiaomi is a bit surprising, though according to some reports, Xiaomi is actually good into creating and developing its own chip. The smartphone company called the chip, Pinecone and is expected to release within this month. Now, that might get things clearer as their flagship Xiaomi Mi 6 is expected to release sometime in March and Pinecone believed the processor will be used for the phone.

According to the report of DigitalTrend, Xiaomi is currently using a company in China called Beijing Pinecone Electronics for the phone's chip development. Pinecone Electronics is paid over $15 million for Datang, a mobile processor company. Now, even Samsung is been acquiring from Qualcomm chips a lot of the time even Samsung has its Exynos chip, division.

Meanwhile, Qualcomm is reportedly at its lowest point after tracing out an ominous top last year, 2016, during the fourth quarter. The stock of Qualcomm greatly fell on January 23 and more than 12% following the heaviest volume since 2010. Reports continuous that this collapse blew over multiple layers of support as the stock greatly fell deeply into oversold territory.

Last week, the stock of Qualcomm was more than 25% below its 2016 peak. The news was alarming for Qualcomm following the news that companies like Xiaomi will likely provide their own chip for their smartphones. Well, with this month, Qualcomm is trying and taking chance to build a bottom, cross fingers for Qualcomm making its track back to the game.