Qualcomm is no longer the top supplier of chipsets for smartphones

admin
Posted by admin December 26, 2020
In accordance with Counterpoint Analysis, there was a change within the smartphone trade. In the course of the third quarter of this 12 months overlaying July by September, MediaTek overtook Qualcomm to change into the highest supplier of chipsets for the smartphone trade with a 31% share of the market. Counterpoint attributes MediaTek’s success to sturdy gross sales of telephones within the $100-$250 value vary amid sturdy progress within the prime two smartphone markets on the earth; that may be China (#1) and India (#2). As a growing nation, Indian customers choose worth manufacturers lots of which use MediaTek chips as an alternative of Qualcomm’s pricier Snapdragon silicon.

MediaTek takes the smartphone chipset crown from Qualcomm in Q3

This isn’t to say that Qualcomm could not discover a candy spot for progress in Q3. With 39% of the market, the chip maker is the main supplier of 5G chipsets for telephones and this can be a market that doubled throughout the third quarter. Counterpoint says that 17% of  all telephones bought throughout the third quarter supported 5G. That determine is anticipated to rise to 33% for the present quarter that began in October and concludes on the finish of the 12 months. With sturdy progress in 5G shipments for the fourth quarter, Qualcomm does have an opportunity to take again the crown that MediaTek took away from it.

MediaTek’s main 31% share of the smartphone chipset market was a 19% p.c acquire from the 25% share that the Taiwan primarily based agency had final 12 months. Throughout the identical time interval, Qualcomm’s slice of the chipset pie for handsets declined from a number one 31% to the present 29%. Apple was third as its A-series chips, constructed completely for its telephones and tablets, garnered 12% of the market. That put Apple in a three-way tie with Samsung and Huawei’s HiSilicon unit.

Counterpoint Analysis Director Dale Gai identified that “MediaTek’s sturdy market share acquire in Q3 2020 occurred on account of three causes – sturdy efficiency within the mid-end smartphone value phase ($100-$250) and rising markets like LATAM (Latin America) and MEA (Center East and Asia), the US ban on Huawei and at last wins in main OEMs like Samsung, Xiaomi and Honor. The share of MediaTek chipsets in Xiaomi has elevated by greater than thrice because the similar interval final 12 months. MediaTek was additionally capable of leverage the hole created because of the US ban on Huawei. Inexpensive MediaTek chips fabricated by TSMC grew to become the primary possibility for a lot of OEMs to rapidly fill the hole left by Huawei’s absence. Huawei had additionally beforehand bought a major quantity of chipsets forward of the ban.”

Gai additionally famous that, “However, Qualcomm additionally posted sturdy share positive factors (from a 12 months in the past) within the high-end phase in Q3 2020, once more because of HiSilicon’s provide points. Nevertheless, Qualcomm confronted competitors from MediaTek within the mid-end phase. We consider each will proceed to compete intensively by aggressive pricing, and mainstream 5G SoC merchandise into 2021.”

Counterpoint Analysis Analyst Ankit Malhotra added, “Qualcomm and MediaTek have each reshuffled their portfolios, and shopper focus has performed a key position right here. Final 12 months, MediaTek launched a brand new gaming-based G-series, whereas Dimensity chipsets have helped in bringing 5G to reasonably priced classes. The world’s most cost-effective 5G gadget, the realme V3, is powered by MediaTek. Utilizing his crystal ball to look into the long run, Malhotra mentioned, “The speedy focus of chipset distributors shall be to deliver 5G to the plenty, which can then unlock the potential of shopper 5G use instances like cloud gaming, which in flip will result in increased demand for increased clocked GPUs and extra highly effective processors. Qualcomm and MediaTek will proceed to contend for the highest place.”