MediaTek Reportedly Regaining Market Share from Qualcomm in the Chinese SoC Market

MediaTek Reportedly Regaining Market Share from Qualcomm in the Chinese SoC Market

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The popularity of various system on a chip vendors generally depends on where you live. In the United States, Qualcomm has various cellular patents that make their SoCs popular in the region, to say the least. In places like India and China though, Qualcomm is less prevalent due to the sensitive pricing market. Since the second half of 2016 though, MediaTek has been losing marketshare to Qualcomm in China but that is expected to change when the company releases its Q3 2017 numbers.

Since the second half of 2016, MediaTek has been losing out to Qualcomm in part because they were falling behind. Pricing of smartphone components definitely falls into play when a competitor can produce a product that is at least competitive to the competition. The cheapest chip or camera sensor will not become popular among smartphone OEMs if they aren’t at least competitive to others. So while MediaTek SoCs are generally less expensive than what Qualcomm offers, they were falling behind in a crucial segment of the market.

However, earlier this year MediaTek unveiled the Helio P23 alongside the Helio P30 SoCs and so far they have been very well received. It seems as if these two chips have hit a sweet spot in a few regions with China’s competitive market being a big one here. Thanks to these newly released chips, MediaTek is expected to have started regaining market share from Qualcomm in the Chinese SoC market for the first time since the second half of 2016.

Sources close to DigiTimes says this is partially due to the new trend we’re seeing in the smartphone market. In 2016, we saw a trend of smartphone companies putting a big focus on camera quality but this year it seems to be all about decreasing the size of the display bezels. Devices like the Galaxy Note 8, LG V30 and the Google Pixel 2 XL are all coming with this new trend and it is gaining popularity all around the world. MediaTek SoCs are said to be targeting this emerging trend, explicitly so with their newer releases in the low-end, and this could help turn the tide.

Source: DigiTimes