MediaTek beats Qualcomm and becomes the world’s largest mobile phone chipset producers for the first time.
According to research firm counterpoint, Taiwan-based MediaTek has overstepped the US chipmaker Qualcomm for the first time to become the world’s largest smartphone chipset supplier in the third quarter of 2020.
They are grabbing 31 percent of the market share with their budget chipsets like Helio G35, Helio G85, G95T, etc. MediaTek saw a total of five percent YoY growth.
The report says that India and China are the most significant contributors to MediaTek’s success in becoming the biggest smartphone chipmaker in 3Q20.
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Reasons for MediaTek’s Win | Mediatek beats Qualcomm
Research Director Dale Gai from Counterpoint said: “MediaTek’s strong market share gain resulted due to three reasons – (1) dominant performance in the mid-end smartphone price segment ($100-$250), emerging markets like LA (Latin America), the Middle East and Africa, (2) the US ban on Huawei and (3) wins in leading Original Equipment Manufacturers like Samsung, Xiaomi and Honor”.
On Friday, Ma Jihua (Veteran industry analyst) told the Global Times, The US sudden ban on Huawei is one of the major reasons that Mediatek beats Qualcomm.
Ma further said, “Over the past year, there has been a ‘reconstitution’ in the global semiconductor sector, as the US ban on Huawei has changed the industry market law, leading to avoiding reliance on a single company and buyers are not purchasing solely based on product technology or quality.”
According to the analyst, Chinese smartphone manufacturers such as Oppo, Vivo, and Xiaomi, accepting lessons from the experiences of Huawei, are among those who have most strongly felt the urgency of diversifying purchasing sources and will particularly avoid becoming too dependent on a single US company.
According to the Boston Consulting Group report in March, the continuation of the bilateral conflicts could also endanger US companies to do business in China. Could cut roughly $49 billion in revenue that the US semiconductor industry yield from the Chinese market.
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Future Expectations
Experts said With the coming 5Gage, Qualcomm will still take the lead in high-end 5G chips for a while. In comparison, rivalry on the market and the “battle” between Qualcomm and MediaTek will continue to escalate in the later period when 5G has been taken to the masses.
Qualcomm holds 39 percent of the world’s 5G phone and 17 percent of all 5G capable smartphones sold. But with the launch of the latest 5G MediaTek Dimensity 800 and Density 1000 processor, the situation may be changing.
So, there you have it, guys. This is all the information you need to know about how Mediatek beats Qualcomm. To get the latest updates on all topics related to technologies, follow Game Stanza.
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