It seems that the increase in the average price of the smartphone and the increase in competition especially in the entry segment are benefiting MediaTek. MediaTek has surpassed Qualcomm to become the world’s largest smartphone chipset vendor in terms of market share.
A new report published by the research company Counterpoint reveals this new situation. While Qualcomm rightly holds the largest market share of 5G-powered chipsets, Counterpoint’s data shows that more than 100 million MediaTek processor smartphones were sold in the third quarter of 2020. Thus, the company has increased by roughly 5 percent compared to the same period last year.
Counterpoint’s report also makes some references to MediaTek’s latest earnings report. The company generated 97 billion 275 million new Taiwan dollars in revenue over the past three months, an increase of almost 50 percent compared to the same quarter of the previous year. The Taiwanese company attributed this growth to the remarkable gains in market share in its press release on the subject. Counterpoint data also reflects this.
Counterpoint emphasizes MediaTek’s performance, especially on phones in the $ 100-250 price band. It also draws attention to its continued growth in the markets of India, China and Latin America. When all these factors come together, MediaTek chips capture 31 percent of the total market. Thus, Qualcomm’s 29 percent market share is left behind.
“Also, MediaTek was able to address the gap created by the US ban on Huawei,” said Dale Gai, research director at Counterpoint. said. “The affordable MediaTek chips manufactured by TSMC became the first choice for many OEMs to quickly fill the void left by Huawei absence. Also, Huawei had previously purchased a significant amount of chipsets before the ban. ”
Meanwhile, MediaTek is taking steps to bring this new generation technology to cheaper phones with its 5G supported processors. As new generation mobile networks become widespread, especially in developing countries, the company will see its reflections more clearly. Until then, it will continue to increase its market share with affordable entry and mid-segment phones.