In the third quarter of 2020, MediaTek surpasses Qualcomm and reaches the top to become the world leader in chips for smartphones TechNews Technology News



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According to statistics from the Market and Technology Research and Research Unit “Counterpoint”, in the third quarter of 2020, MediaTek, a major national integrated circuit design company, reached the top and became the world’s largest chip supplier for smartphones, with a 31% market share and a leading 29% market share. Qualcomm competitor.

The report noted that the reason why MediaTek became the world’s leading supplier of smartphone chips in the third quarter of 2020.Smartphone market sales recovered in the third quarter, allowing MediaTek to perform the smartphone chip market in the $ 100-250 price range. Strong. In addition, the US ban on Huawei from China has allowed mobile phone brands such as Samsung and Xiaomi using MediaTek chips to make significant gains in the market, driving the growth of the MediaTek market. Since the same period in 2019, the proportion of MediaTek chips used in Xiaomi products has grown more than three times. Finally, with the help of China’s Huawei buying a large number of chips before the US ban, it has helped MediaTek to become the world’s largest supplier of smartphone chips.

According to MediaTek’s previous financial report for the third quarter of 2020, revenue amounted to NT $ 97.275 billion, an increase of 43.9% over the second quarter and an increase of 44.7% over the same period in 2019, setting a new all-time high in a single quarter. Gross profit margin was 44.2%, an increase of 0.7 percentage points from the second quarter and an increase of 2.1 percentage points from the same period in 2019. Operating profit was RMB 14,628 million, a 97.3% increase over the second quarter and a 108.1% increase over the same period in 2019, a record in a single quarter. Net profit was RMB 133.67 billion, an increase of 82.8% from the second quarter and a growth of 93.7% from the same period in 2019. It was also a record in a single quarter, with a EPS per share which reached RMB 8.42. This brilliant result seems to confirm Counterpoint’s statistics as well.

At the same time, MediaTek rival Qualcomm will maintain its position as the world’s largest 5G chip provider in Q3 2020. Of the 5G mobile phones sold globally, 39% use Qualcomm chips and in the Q3 2020, global demand for 5G smartphones doubled. Of all smartphones sold in Q3 2020, 17% are 5G phones. A third of the smartphones shipped in Q4 2020 are expected to support 5G networks, giving Qualcomm a chance to regain the title of the world’s largest smartphone chip provider in Q4 2020.

In discussing Qualcomm and MediaTek’s development strategies, “Counterpoint” analysts said that both Qualcomm and MediaTek have reorganized their product portfolios because consumer concerns played a key role. In 2019, MediaTek launched G-series chips that focus on games, and the 5G Dimensity series chips will help bring 5G to the affordable product market, thus driving the popularization of 5G. In view of the prospects for the mobile chip market, the top priority for chipmakers is to promote 5G chips to the masses and then unleash the potential of 5G consumer applications, such as cloud gaming, which will generate a increased demand for powerful performance chips. This also allows Qualcomm and MediaTek to continue competing for the top spot in the future.

(Source of first image: Science and Technology News Photo)





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