Compiled by Xindong (public account: aichip001) | Zipei Editor | Panken Zhidongxi reported on December 25 that according to market research company Counterpoint, MediaTek's smartphone chip market share rose from 26% in the same period last year to 31%, surpassing Qualcomm to beco

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Smart Things reported on December 25 that according to market research company Counterpoint, MediaTek 's smartphone chip market share rose from 26% in the same period last year to 31%, surpassed Qualcomm to become the world's largest smartphone chipset supplier for for the first time. Although Qualcomm was overtaken by MediaTek in its overall share, it is the largest 5G smartphone chip supplier in Q3.

At the same time, Qualcomm ranks second with a market share of 29%, Apple, Huawei HiSilicon and Samsung are both 12%, and Unigroup Zonrade has a market share of 4%.

1. The three pillars of share growth: mid-range mobile phones, emerging markets, US ban

Commenting on MediaTek's market share growth, Counterpoint research director Dale Gai believes that there are three main reasons for MediaTek's strong growth this quarter:

First, mid-range smartphones with prices between $100 and $250 performed strongly.

The second is the explosion of emerging markets such as Latin America and India.

Third, due to the US ban, large orders from OEM ( original equipment manufacturer ) such as Xiaomi , Samsung and Honor. When

took OEM orders, the MediaTek chips used by Xiaomi alone increased by more than three times compared with the same period last year. At the same time, MediaTek also took advantage of the gap caused by the US ban on Huawei and obtained a large number of orders. MediaTek chips made by TSMC are extremely cost-effective and have become the first choice for many OEMs to fill chip gaps. Huawei also purchased a large number of chipsets from MediaTek before the ban was implemented.

Gai also added that in the mid-range mobile phone market, MediaTek's biggest competitor is Qualcomm. Due to the ban on Huawei HiSilicon, Qualcomm performed well in the high-end mobile phone market. And due to the huge demand for 5G chips, the competition between the two in the 5G chip field will also "sky" next year, and will further promote mainstream 5G SoC products in the competition.

2. Qualcomm's 5G chips are in a strong momentum, and the 5G market may stage a "dragon and tiger battle" next year

In the third quarter of 2020, the demand for 5G chips in the global smartphone market doubled. Among all the mobile phones sold in that quarter, the proportion of 5G mobile phone reached 17%, of which 39% of 5G chips were provided by Qualcomm, and Qualcomm became the world's largest 5G mobile phone chipset supplier in the third quarter.

As manufacturers such as Apple have also launched 5G mobile phone lineups, the market share of 5G mobile phones will further expand. Of the smartphones shipped in the fourth quarter of 2020, one-third of them are expected to support 5G, which will also make Qualcomm highly likely to regain the top spot in smartphone chipset suppliers in the fourth quarter.

Commenting on Qualcomm and MediaTek's growth strategies, research analyst Ankit Malhotra said: "Qualcomm and MediaTek both redesigned their product layout from a consumer perspective. Last year, MediaTek launched the G-Series for gaming, while the Dimensity chipset lowered the 5G purchase threshold, the world's cheapest 5G device Realme The chips equipped with V3 were launched by MediaTek. "When commenting on the prospects of chipset suppliers, Malhotra also mentioned: "The top priority of chipset suppliers will be to push 5G to the public and release the potential of C-end consumption such as cloud gaming, which will also force technology upgrades and bring more advanced GPUs and more powerful processors. In these fields, Qualcomm and MediaTek will continue to stage a "tall battle".

Source: Counterpointed 4