Taipei, Monday, May 25, 2015 15:52 (GMT+8)
mostly cloudy
Taipei
25°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.

Topics: Page 2

Companies: MediaTek

Realtime news
  • Wireless charging application market to flourish on strong consumer electronics demand, says MIC

    IT + CE | 12min ago

  • DRAM prices fall 9% in 2Q15, says paper

    Bits + chips | 14min ago

  • E Ink capex to further drop in 2015

    Displays | 15min ago

  • Digitimes Research: Sharp struggling due to lagging orders in China

    Displays | 1h 39min ago

  • Asustek faces challenge to hit 2015 target shipments of 25 million smartphones

    Mobile + telecom | 1h 58min ago

  • China market: Price competition for 4G smartphones heating up

    Mobile + telecom | 4h 32min ago

  • Smart home security land grab will drive security monitoring services into 15 million more US homes by 2020, says ABI Research

    IT + CE | 4h 39min ago

  • Taiwan 1Q15 economic growth rate downward adjusted to 3.37%, says DGBAS

    Bits + chips | 4h 43min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

How China is shaping the LTE/TD-LTE market in 2015

CHINA SMARTPHONE | Apr 9, 15:42

Digitimes Research estimates that the global LTE market doubled in size to 445 million users in 2014 and we further forecast that annual growth in the number of LTE users will remain above 70% between 2015-2016, with the overall market reaching 1.466 billion...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

Taiwan server shipment forecast and industry analysis, 2015
Trends and forecasts for the China FPD industry, 2014-2017
Demand and supply trends in the global sapphire industry, 2014-2015
  • 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.