Tue, Mar 10, 2015 - Page 14 News List

MediaTek could gain from Chinese mobile shipments

Staff writer, with CNA

Taiwanese chip designer MediaTek Inc (聯發科) could benefit from exports of Chinese smartphones this year as more Chinese handset brands prepare to expand overseas, a US-based brokerage said.

In a research note written after the recently concluded Mobile World Congress, the brokerage said that the number of small smartphone brands in China continues to increase as they have set their sights on selling more handsets overseas.

Among these brands, those that are focused on 3G devices are using chipsets mostly supplied by MediaTek, said the US brokerage, whose name cannot be reported under new rules by Taiwan’s financial regulator, because it is offering specific forecasts that could affect the market.

However, among 4G smartphone makers, Chinese companies that are focused on exports still mostly use Qualcomm Inc chips, while brands with a domestic market focus are split between MediaTek and Qualcomm Inc, the brokerage said.

“Clearly, exports are a major driver for MediaTek this year, and the company needs to beef up its international infrastructure and modem capabilities,” the US brokerage said in a note to clients on Thursday last week.

MediaTek, a major supplier of handset chips to China’s low-cost mobile phone makers, remained the world’s No. 3 supplier of smartphone application processors in the third quarter of last year, according to market research firm Strategy Analytics.

Based on Strategy Analytics’ estimates, Qualcomm, Apple Inc, MediaTek, Spreadtrum Communications Inc (展訊) and Samsung Electronics Co held the top five smartphone applications processor spots in the July-September last year period, with their rankings remaining unchanged from the previous quarter.

US-based Qualcomm maintained its lead in the smartphone applications processor market with a 51 percent revenue share in the third quarter last year, followed by Apple with a 19 percent revenue share and MediaTek with a 15 percent revenue share, Strategy Analytics said.

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