Qualcomm has signed a licensing deal with Vivo Communication Technology that will allow China’s third largest smartphone maker to use Qualcomm’s technology in its 3G and 4G phones.
The deal comes a week after Qualcomm sealed a similar deal with OPPO, which is also owned by Guangdong-based Chinese consumer electronics manufacturer BBK Electronics.
Under the terms of the agreement, Qualcomm has granted Vivo a royalty-bearing patent license to develop, manufacture and sell 3G W-CDMA and CDMA2000 and 4G LTE (including “3-mode” GSM, TD-SCDMA and LTE-TDD) complete devices for use in China, the companies said in a joint statement.
The royalties payable by Vivo are consistent with the terms of the rectification plan submitted by Qualcomm to China’s National Development and Reform Commission (NDRC) in 2015 .
Vivo vice president Shi Yujian said the license agreement will allow Vivo to have access to the latest technologies from Qualcomm and will enable the company to continue to create innovative and high-quality devices for its customers.
Vivo is a technology company founded in 2009 in Guangdong as a sub-brand of BBK Electronics.
In 2012, Vivo released what it claimed as the world's thinnest smartphone X1, which was the first Vivo phone to use a Hi-Fi chip, developed by a US-based semiconductor company Cirrus Logic.
According to the latest research from Strategy Analytics, China smartphone shipments rose 4% annually to hit 109 million units in Q2 2016.
Huawei held on to first position and captured 18% smartphone market share in China, followed by fast-growing OPPO in second place.
Vivo nudged up to third position for the first time ever with 12% smartphone market share in China during Q2 2016 [Exhibit 1].
“The success of Vivo lies in good hardware designs, robust product quality, strong retailer penetration, and rising brand awareness among mass-market consumers,” the research firm said.