Taipei, Wednesday, July 27, 2016 10:36 (GMT+8)
thunderstorms
Taipei
32°C
Digitimes Research: MediaTek to continue eating into Spreadtrum market share
Eric Lin, DIGITIMES Research, Taipei [Thursday 20 March 2014]

Despite the slow-season performance of China's smartphone market, chipmaker MediaTek's smartphone application processor (AP) shipments in the first quarter continue to see strong growth like it did during the previous quarter. The good price/performance ratios of MediaTek's entry-level and mid-range WCDMA smartphone APs have boosted their popularity among emerging markets.

Seeing MediaTek's rapid penetration into emerging markets, its competitors, particularly Spreadtrum, face great challenges defending their market shares. Spreadtrum used to focus on supplying EDGE and WCDMA smartphone AP products to emerging markets, but its shipments have begun to drop sharply since early 2014 with a pace even faster than the decline its single-core TD-SCDMA products saw during the second half of 2013.

According to Digitimes Research's figures, Spreadtrum's smartphone AP shipments in January and February 2014 were only half of those of the same months in 2013 and were even lower than its monthly average of the second half of 2013. Although market watchers expect the China chipmaker's shipments to improve in March, it is unlikely to help it fully regain the market share it has lost to MediaTek.

Spreadtrum was originally set to release its 3-mode LTE smartphone AP products in April, but the China government's policy change requiring five-mode support is expected to dampen Spreadtrum's shipments in the second half of the year.

In the second half, Spreadtrum will release its baseband-integrated tablet APs to increase its presence in the market, but with MediaTek already dominating the market and Qualcomm aggressively trying to make forays into the segment, the China-based maker will be unlikely to have any advantage in terms of product specifications or prices.

Enty-level smartphones and tablets are starting to adopt quad-core APs, but Spreadtrum's quad-core APs and solutions are immature. Its clients have started turning to MediaTek's solutions for their devices, which means Spreatrum will have a difficult year.

Realtime news
  • PTI posts profit growth in 2Q16

    Bits + chips | Jul 26, 21:58

  • Realtek 2Q16 profits soar over 70%

    Bits + chips | Jul 26, 20:36

  • Digitimes Research: Taiwan ships over 269 million small- to medium-size panels in 2Q16

    Displays | Jul 26, 20:35

  • ET Solar, Xian LONGi set up joint venture for overseas PV module marketing

    Before Going to Press | Jul 26, 21:09

  • Taiwan to allocate frequency bands for IoT based on flexibility, says MOTC head

    Before Going to Press | Jul 26, 20:56

  • Taiwan market: Epson to promote digital sewing pattern printing

    Before Going to Press | Jul 26, 20:23

  • Taiwan should strive to develop innovative IoT applications, says Google executive

    Before Going to Press | Jul 26, 20:22

  • Foxlink developing service-oriented robotic arms and robots

    Before Going to Press | Jul 26, 19:58

  • Hangzhou factories concerned about impact of air pollution controls during G20 Summit

    Before Going to Press | Jul 26, 19:50

  • E-sports expected to push demand for gaming notebooks, desktops in 2H16

    Before Going to Press | Jul 26, 19:46

  • State Power Investment procures 2.75GWp of PV modules

    Before Going to Press | Jul 26, 19:45

  • Pegatron chairman lauds SoftBank chairman for acquiring ARM

    Before Going to Press | Jul 26, 19:44

  • Global OLED panel shipments in 2016 to reach 36.69 million units, says IHS

    Before Going to Press | Jul 26, 19:40

  • Pegatron automates factory in Shanghai, says chairman

    Before Going to Press | Jul 26, 19:39

  • Digitimes Research: Launch of Android-based Pepper to ramp up market size

    Before Going to Press | Jul 26, 19:34

Pause
 | 
View more
UMC
Display panels for wearable devices
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.