With 5G being the new trend in the smartphone industry, more and more OEMs are adopting the newer and faster bandwidth for their handset offerings from different segments. Despite this, 4G LTE enabled smartphones are still more popular and see higher sales and, due to supply constraints, many 4G chips from MediaTek to be out of stock until the end of 2020.
According to a UDN report, MediaTek’s supply for many of its 4G mobile chip has run dry and the restock will arrive only by 2021. The lack of supply is also indicative of the chipmaker’s focus on 5G chips, which has become popular in the current market in 2020. At the moment, the company has yet to comment on this matter but it is already known that its Dimensity chips have seen a rise in orders in the past quarter.
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TrendForce, a known research based firm, also pointed out that the inclusion of Apple into the 5G market will boost the reach of 5G smartphones in multiple markets. Previously, we had even reported on another analysis from TrendForce that projected that Apple and Huawei will be the market leaders of the 5G market in 2020, especially in the second half of 2020. Ever since Huawei lost TSMC for chip supply, 5G Dimensity chips from MediaTek have also seen increased orders.
Although, while 5G chips have become increasingly more popular, 4G handsets are still preferred by consumers and have dominance in the market. One of the reasons for the shortage stems from the company’s supply chain, coupled with a lack of power management ICs. Thus, the supply for low end MediaTek chips are in short supply till the end of this year.
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