Hardware FixRecommendedDevice not working? Your driver may be the problemCheck updates for common hardware issues.Fix DriversOctober DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsSlow PC?RecommendedPC slow today? Run a repair scan before it gets worseResolve common Windows issues and optimize system performance.Scan Now×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

What Caused Telegent Systems’ Spectacular Fall? China’s Price War and a Changing Market

China’s chip-price competition dealt Telegent an immediate blow, but a maturing broadcast-TV market and the move to internet video undermined the opportunity too.
From TheFinanceBase Team3 min to read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

China’s chip-price competition was the immediate blow to Telegent Systems: its reported average selling price fell from $6 to $0.80 within months. But the company’s model was also weakening as the market for analog mobile-TV chips matured and viewers shifted toward internet video on their phones.

What did Telegent sell?

Telegent Systems was a Sunnyvale-based fabless semiconductor company. Its chips let mobile handsets receive free-to-air analog television broadcasts. It was not a handset maker or a broad consumer-electronics brand; its fortunes depended on phone manufacturers adopting a particular way to watch broadcast TV.

According to EE Times’ July 2011 account, Telegent entered an underdeveloped analog mobile-TV niche while many competitors focused on emerging digital broadcast standards. By late 2009, the company was believed to control nearly all of that niche. That position gave it room to sell chips at attractive prices, but it also left the business exposed when other suppliers moved into the same market.

Why did Telegent’s economics deteriorate?

Competitors triggered a sharp price decline

EE Times reported that Telegent’s chip average selling price fell from $6 to $0.80 within months as MediaTek, RDA Microelectronics, Newport Media, and other competitors entered or expanded in the analog market. The article framed China’s intense chip competition as the immediate commercial cause: undercutting rapidly erased the margin advantage Telegent had enjoyed as a near-single supplier.

What’s actually slowing this PC down?

Pick the symptom - the matching free tool is one click away.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Digital TV Converter Box, ATSC Tv Tuner - ZJBOX for Analog HDTV Live 1080P with Recording&Playback,HDMI Output, Timer Setting Tuner Function Digital Channel Free
  • Our ATSC digital TV converter box receives over-the-air ATSC digital TV broadcast via external antenna and converts it to your Analog and Digital TV, Projector, and Computer Monitor. TV recording, Favorite Channel List, Parental Control Function.
  • Full HD: The 1080p output resolution allows you to watch and record free to air television depending on signal quality. Closed Caption, Auto Tuning, Timing Start Up & Shut Down.
  • You can select view Photos, play MP3 music files and view movie files, and recorded TV program from your USB storage device.
  • TV Recording Function: The function allows you to record TV programs in USB hard drive and playback on your TV or Computer.Note: This device does not have built-in storage and requires an external storage device. It is best suited for external hard drives with a FAT32 file system capacity of up to 4TB or flash drives with a capacity of up to 32GB.
  • What You Get: 1 x Digital TV Box,1 x Remote Control,1 HDMI Cable, 1 Composite cable,1 year Warranty.

The same report said an industry source estimated Telegent was selling 25 million chips a month at an average price of roughly $6. That volume and price were estimates attributed to an industry source, not audited company figures. Separately, EE Times reported that Telegent disclosed $111.12 million in revenue and $39.36 million in net income in its November 2009 IPO application. These figures describe the company at an earlier point; they do not show that the business could maintain those economics once prices fell.

The addressable broadcast market was maturing

Price competition struck as the available market for analog mobile-TV units was topping out, according to the contemporaneous EE Times report. Digital transitions in Latin America and parts of South Asia further limited the potential for analog-chip growth. A near-dominant share of a niche could not guarantee continued expansion if the niche itself stopped growing or shifted to another broadcast standard.

Rank #2
Digital Converter Box for TV, OWERSLYN ATSC TV Tuner for 1080P Live with Program Recording & Playback, USB Media Player, HDMI/AV Output(AV Cable Included), 2-in-1 Remote, Free Digital Channels
  • Digital TV Converter Box: 2026 OWERSLYN Mini Digital Converter Box for TV receives ATSC broadcast signals from an antenna and outputs them to a TV, Projector, or a Monitor, allowing you to watch TV programs with ease. its compact design lets you conveniently hide it behind your TV.
  • 75% smaller than normal ATSC tuner that can be plugged into your TV’s HDMl port and powered by TV’s USB or 5V USB Charger, can tuck neatly behind your TV. IR infrared sensor and 2-in-1 Remote control with learning function so you don't have to use the old remote control as well. Note: CH3/CH4 channel switching is not supported.
  • TV converter box features an HDMI output that supports 1080P HD resolution and offers three video output options: HDMI, 3RCA, and component. Both HDMI and 3RCA cables are included in the package, so there's no need to buy additional video cables—just plug and play. *Note: Not compatible with TVs that only have an RF input.
  • You can play video,music and view photos, or recorded TV shows from your USB storage device.Real-time DVR recording of digital converter box allows you to record TV shows for future watch, timer setting can be scheduled recording at any time you want. (Incompatible with streaming programs)
  • What You Get: 1 x TV Tuner Stick,1 x 2 in1 Remote Control,1 x HDMI Cable, 1 x 3RCA Cable, 1 x USB to DC Cable, 1 x lR Receiver with display, 1 x Manual.📞 Enjoy lifetime support, one-year warranty, and quick responses within 24 hours. Important Note: This device receives Over-The-Air signals via an antenna. It does NOT work as a replacement for a Cable Box. An external antenna (sold separately) is required.

People increasingly watched video over the internet

In a later EE Times interview, CEO Ford Tamer and CTO Samuel Sheng added a demand-side explanation: viewers increasingly watched video on handsets through internet streaming over Wi-Fi or LTE rather than through broadcast reception. Tamer said, “In the end, we couldn’t change the market dynamics.” Sheng described the environment as, “Consumer chips in China are a hugely competitive market.”

Former FCC chairman and Telegent board member Reed Hundt put the broader shift this way: “Mobile devices turned out to be a gateway to the Internet, not to broadcast. Broadcasters could have played a role on mobile. But they missed the window.” His comment, reported in the EE Times interview with Tamer and Sheng, captures why lower chip prices were not the only problem: mobile video use was moving toward a delivery method that did not require Telegent’s broadcast-TV chips.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
SiliconDust HDHomeRun Flex 4K ATSC 3.0 NextGen TV: 2/4 Tuners HDFX-4K
  • NextGen TV certified - watch live TV on multiple devices simultaneously throughout your home with our Multi room Multi user network tuner solution
  • Full whole-home DVR by connecting a USB hard drive - no subscription required (paid TV guide available for advanced auto-record features)
  • ATSC 1.0 content is compatible with Android, FireTV, AppleTV, Roku, Sony, XBox, iPhone, iPad, Win10/11, Mac
  • ATSC 3.0 DRM-free content is compatible with Android, FireTV, AppleTV, Roku Ultra 4800X and newer, iPhone, iPad, Win 10/11, Mac. Not compatible with DRM protected channels
  • 4 tuners (2 ATSC 3.0, all 4 ATSC 1.0)

How should the causes be weighed?

Cause What the sources report Why it mattered
Immediate competitive pressure EE Times reported that competitors’ entry and undercutting coincided with a fall in average selling price from $6 to $0.80 within months. Lower prices compressed the economics of supplying the chip, even while Telegent held a strong position in its niche.
Structural market change EE Times described a market nearing saturation and digital transitions; Tamer and Sheng later said viewers were moving toward internet-streamed video over Wi-Fi or LTE. A shrinking or changing market limited the value of competing for share in analog broadcast chips.

The price war is the clearest explanation for the rapid collapse in chip economics. The market’s maturation and the shift in viewing habits explain why a price recovery alone would not necessarily have restored the original opportunity. The first point comes from contemporaneous trade reporting; the viewing-habit explanation comes from retrospective testimony by former executives and a board member.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What happened to Telegent?

Telegent withdrew its planned IPO. Ford Tamer had joined as CEO in June 2010. Spreadtrum Communications’ 2012 Form 20-F says Spreadtrum acquired 100% of Telegent on August 2, 2011, to strengthen its mobile-broadcast-TV patent portfolio.

Rank #4
Mygica A681B USB 2.0 TV Tuner Card, ATSC HD Digital External HDTV Tuner Stick Dongle Adapter for Windows PC Computer + Laptop + Android TV - Black
  • 1. Precautions before use: Please download the latest electronic version of the instructions from the Mygica official website and read it carefully. This product is not ready for use after purchase. User needs to install the corresponding driver and playback software.
  • 2. Product introduction: A681B is a TV tuner that allows users to watch digital TV programs on desktop computers and laptops. After installation, there is no need for WiFi network to watch digital TV. It is a very practical product for viewers who like to watch various live sports games and TV programs.
  • 3. Product features: small, portable, supports 1080P HDTV. After installing the playback software "HiDTV", you can record and play back the video.
  • 4. Compatible devices: A681B is compatible with Windows desktop computers, Windows laptops, Android TV, Android car machines and other Android devices (Android version of the playback software must be installed). Note: This product is not compatible with MacBook.
  • 5. Compatible operating system versions: Compatible with Windows 7/ Windows 10 / Windows 11 / Linux ubuntu 20.04.1, kernel:5.4

The filing reports consideration of approximately $5.1 million net of cash acquired, excluding indemnification holdbacks. That is a specific accounting measure from Spreadtrum’s filing, not a simple headline sale price.

In the later EE Times interview, Tamer said $100 million was distributed among shareholders and employees. He declined to disclose the actual deal amount and said acquisition calculations can be affected by liabilities, escrow, and inventory. His distribution claim is a separate executive account and should not be treated as the same measure as Spreadtrum’s filed net-of-cash consideration.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Best Value
ATSC Digital Converter Box with TV Tuner, TV Recording, USB Multimedia Function, 1080P HDMI, Metal Case, Clear QAM, by Mediasonic HomeWorx (HW250STB)
  • 2026 Latest Batch from Mediasonic Store. The new improvements included LARGE Remote Control, 5 ft HDMI Cable, Front Display Panel, Support hard drive up to 2TB, reception sensitivity, and 12 hr. AM / PM feature.
  • Clear QAM function can be used with cable provider to watch unscrambled cable channels. The channel must be UN-Encrypted signal
  • Front Display to show Channel number and sub-channel, and show Clock in standby mode.
  • Receive Over-The-Air ATSC Digital Broadcast to your Analog and Digital TV, Projector, and Computer Monitor.
  • Record and Pause Live TV: You won’t miss your favorite show. (Requires USB 2.0 or USB 3.0 external hard drive up to 2TB connect to this unit; USB flash drive is not recommended)

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.