Mediatek’s 4G Chips Shipments Increases, But It’s Not All Good News

by Habeeb Onawole 5

Mediatek and Qualcomm are the two major chip makers in the world, while we do have others such as Samsung’s Exynos and Huawei’s Kirin, majority of devices are sporting either a MTK chipset or a Snapdragon processor.

Qualcomm has always taken the lead in chip shipment in the Chinese mainland market, but analyst Pan Jiutang posted on his Weibo page that for the second quarter of this year Mediatek has claimed the top spot thanks to the success of the Helio series (save for the weak performance of the Helio  P20 which has  cost them OPPO and Vivo’s order) and more sales from online and offline brands.

pan jiutang MTK chip shipments

But the increase in shipments is not being celebrated as the company’s gross margin has dropped to its lowest level (35%) in a decade. The company is still facing issues with regards to performance, process, and average selling price. They are also still dealing with supply issues which will still show up in the second half of the year.

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Mediatek also needs to make sure they have a major breakthrough in the high-end market come 2017 or else that share of the market will be fully owned by Qualcomm.