MediaTek Is Finding It Difficult To Meet Chipset Delivery Target

MediaTek is predicted to find it difficult to meet the chipset delivery target this year. Learn more!

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MediaTek is predicted to find it difficult to meet the chipset delivery target this year. This is because the income of the Taiwanese semiconductor device manufacturer at the beginning of the fourth quarter of 2018 declined compared to the previous quarter.

The income figure at the beginning of October was recorded to have decreased by 9.8 percent compared to the revenue obtained in September.

Broadly speaking, this figure made MediaTek decline by 0.84 percent from the same period last year.

According to Gizmochina, the decline in revenue was triggered by the decline in the number of shipments of smartphones using the MediaTek chipset on the market.

Although MediaTek’s latest chipset, Helio P70, is predicted to be well received by the public, it is estimated that it still cannot make MediaTek reach its target.

On the other hand, Qualcomm, which is actually MediaTek’s biggest rival, acts more sporadically. Manufacturers from the US were aggressively penetrating the middle class chipset market with the release of the Snapdragon 700 series.

As such, this has further eroded MediaTek and has difficulty moving to reach the shipment target.

In addition, MediaTek’s decision in 2017 to reduce high-end chipsets and focus more on the middle segment was also suspected to have a large influence.

This decision then left a gap that made Qualcomm able to move more freely. They can also gain a larger chip market share for the upper-class segment.

Initially, MediaTek targeted an increase in the number of shipments to 10 percent by the end of 2018. However, until now the number of market requests for MediaTek chipsets is still the same as the previous quarter, so the increase target for chipset shipments is difficult to achieve.

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