Research analysis
China smartphone AP shipments to increase 17% in 2Q18, says Digitimes Research
Osiris Hu, DIGITIMES Research, Taipei

Shipments of smartphone-use application processors in China are expected to increase 17% sequentially to 173.8 million units in the second quarter of 2018, Digitimes Research estimates.

Smartphone vendors began to step up their pace of orders in March. Disappointing smartphone sales in the fourth quarter of 2017 led to inventory adjustments at vendors, which dragged down AP shipments in China in the first quarter of 2018, Digitimes Research figures show.

Smartphone AP shipments in China came to 148.5 million units in the first quarter, down 29% sequentially but up 17% from the same period in 2017. Shipments for the second quarter are forecast to represent a 2.2% decrease compared to the same period in 2017.

MediaTek's smartphone AP shipments in China are expected to surge 33.7% sequentially in the second quarter, as sales of its Helio P series have begun to gain momentum. MediaTek's new 12nm Helio P series utilizing an AI processing unit (APU) has attracted orders from Oppo and Xiaomi.

Qualcomm has seen its smartphone AP sales growth in China due to maturity of the market. Besides, Qualcomm intends to maintain its gross margin which will put it in an unfavorable position amid fierce competition from its Taiwan- and China-based rivals due to less flexibility in its pricing strategy, Digitimes Research believes.

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