MediaTek surpasses Qualcomm and becomes the largest smartphone chip maker for the first time in Q3: Counterpoint

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Key highlights

  • This happened when smartphone sales resumed
  • However, Qualcomm was the largest 5G chipset provider this quarter

With 31% market share in the third quarter (Q3) of 2020, Taiwanese chipset maker MediaTek has become the largest smartphone chipset provider outperforming chip manufacturing giant Qualcomm as smartphone sales rebounded in this. quarter, according to a new report.

According to Counterpoint Research’s new report, Hsinchu, Taiwan-based MediaTek’s strong performance in the $ 100- $ 250 price range and growth in key regions like China and India have helped it become the largest supplier of smartphone chipset.

“The strong increase in MediaTek’s market share in Q3 2020 happened for three reasons: strong performance in the mid-range smartphone price segment ($ 100- $ 250) and emerging markets such as LATAM and MEA, the ban on United States over Huawei and finally victory in major OEMs such as Samsung, Xiaomi and Honor, “Dale Gai, Research Director, Counterpoint said in a statement.

“The share of MediaTek chipsets in Xiaomi has increased more than three times since the same period last year. MediaTek was also able to exploit the gap created due to the US ban on Huawei. The affordable MediaTek chips manufactured from TSMC became the first option for many OEMs to quickly fill the gap left by Huawei’s absence. Huawei had also previously purchased a significant amount of chipsets prior to the ban. “

Qualcomm was the largest 5G chipset provider in the third quarter of 2020. It powered 39% of 5G phones sold worldwide. Demand for 5G smartphones doubled in Q3 2020: 17% of all smartphones sold in Q3 2020 were 5G. This impressive growth trajectory will continue, especially with Apple launching its 5G line.

“Qualcomm and MediaTek have both reshuffled their portfolios and consumer focus has played a key role here. Last year, MediaTek launched a new game-based G series, while Dimensity chipsets helped bring 5G into affordable categories. The world’s cheapest 5G device, realme V3, is powered by MediaTek, ”said Ankit Malhotra, Research Analyst, Counterpoint.

A third of all smartphones shipped in Q4 2020 are expected to be 5G enabled. There is still a chance that Qualcomm will regain the top spot in the fourth quarter of 2020.