MediaTek has managed to overtake Qualcomm, its biggest competitor in chipset sales. MediaTek is expected to continue its leadership in 2021.
With the smartphone market making a strong start in sales in the third quarter of 2020 despite the coronavirus, MediaTek became the leading smartphone chipset vendor for the first quarter in its history. It should be noted that Qualcomm fell to the second place after MediaTek’s success. But Qualcomm is still the leader in 5G chipset sales.
MediaTek’s growth is dependent on increased interest in the middle segment in both India and China. Because in this period, users turned to the middle and entry segment rather than the flagship. MediaTek’s market share reached 31 percent, the highest ever for the company. Qualcomm ranked second with a market share of 29 percent, and HiSilicon, Apple, and Samsung each managed a 12 percent market share.
Qualcomm is expected to regain leadership in market share in the fourth quarter of 2020 as most of the smartphone sales are expected to be 5G-enabled phones. MediaTek is expected to enter the flagship chipset segment in 2021. The company, which wants to be a big competitor to Qualcomm, will probably eliminate its competitor by keeping the prices affordable.
Qualcomm’s mid-segment chipsets are unfortunately quite expensive in terms of price. Unable to reduce the cost of 5G technology, Qualcomm is expected to close this shortcoming next year. Note that MediaTek will put more weight on 5G chipsets in the first quarter of 2021.