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MediaTek becomes the leader of the smartphone processor market


Counterpoint Research’s latest report publishes comprehensive data on the Smartphone Application Processor (AP) market covering the period from Q4 2021 to Q1 2023. The data reveals interesting trends and changes among key players in the industry. Although MediaTek experienced a decrease in the first quarter of 2023 compared to the previous quarter, it has become the dominant power in the smartphone processor market. This article details the report and sheds light on the performance of MediaTek, Qualcomm, Apple, UNISOC, Samsung and Huawei Hisilicon and discusses potential industry implications.

OPPO’s decision to abandon chips will benefit both Qualcomm and MediaTek

In the first quarter of 2023, MediaTek took up 31% of the smartphone access point market. However, the company saw decreases in both volume and market share compared to the previous quarter. The decrease is attributable to inventory adjustments and weaker demand; This results in an estimated more than 5% decrease in LTE SoC shipments and less than 5% growth in 5G SoC shipments in Q2 2023. Analysts expect a recovery for MediaTek in the second half of 2023. the year in which the reserve level stabilizes.

Qualcomm, the leading player in the AP market, captured 28% of the market in the first quarter of 2023. Shipments are expected to remain stable in the second quarter of 2023 due to reduced inventories that are expected to normalize in subsequent quarters.

Known for its chipsets, Apple owned 26% of the market. However, the number of chipsets is expected to decrease in the second quarter of 2023 due to seasonality. Despite this, iOS has outstripped the Android market and resisted weak demand.

In the first quarter of 2023, Samsung saw a slight increase in shipments with the launch of the Exynos 1330 and 1380 chipsets. These offers served both the upper and lower segments of the market, resulting in increased sales.

Specializing in the budget segment, UNISOC saw a slight increase in shipments in the second quarter of 2023 driven by increased demand for its under $99 LTE ​​portfolio.

Huawei Hisilicon, which currently has a market share of less than 1%, may be making a comeback with a new mobile chip that is expected to be released soon. Counterpoint analysts estimate shipments of 2-4 million units of Huawei HiSilicon in 2023, targeting mainly the mid-range segment.

Analysts at Counterpoint also highlighted the positive aspects of OPPO’s decision to abandon chip development plans for both MediaTek and Qualcomm, as it means less of a competitor to worry about. The anticipated resurgence of MediaTek, the potential entry of new players into the market, and collaboration opportunities highlight the development of the smartphone AP market, promising exciting developments in the near future.

Source: Port Altele

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