MediaTek may supply components for Apple’s Beats products

It's worth mentioning that MediaTek for the first time has entered Apple's supply chain.

MediaTek (MediaTek)

Looks like chipset maker MediaTek is getting some business from Apple this year. According to a report from China, the Taiwanese company has entered Apple's supply chain for headphones. It will be making some of the components for Apple's Beats brand.

It's worth mentioning that MediaTek for the first time has entered Apple's supply chain. However, it's still not clear what components will the company supply. According to analysts, the full set of order is set to come between February and March this year. Apple is expected to ship around 200 million iPhones this year and most of them won't be coming with earphones. Here's where the company's Beats portfolio will possibly come into play.

It's worth mentioning that Apple has continued to keep Beats a powerful and active lineup in the earphones and headphones industry. Even though it has started unbundling the earpods from iPhone retail boxes, it is still launching new Beats products at regular intervals. 

Apple recently in its earnings calls did mention that AirPods and other variable devices have slowed down in terms of sales. However, Beats has a wide range of products, ranging all the way from entry level models to high-priced units, and can act as a good weapon for Apple in the wearable business.

With MediaTek joining the supply chain, it is an indication that Apple is also sensitive to product prices and cost effectiveness.

On a related note, MediaTek recently joined hands with Honor, which was previously a sub-brand of Huawei but recently became independent. The company launched its Honor V40 in China with MediaTek Dimensity 1000+ processor.