Smartphone application processor (AP) shipments to China vendors registered a larger-than-expected increase sequentially in the second quarter of 2019, thanks to deliveries made in advance to avoid the burden of potential tariffs from the US, according to Digitimes Research.
Smartphone AP shipments to China surged 39.1% sequentially in the second quarter, according to Digitimes Research's latest China Smartphone AP quarterly report.
Looking into the third quarter, Digitimes Research forecast smartphone AP shipments to China will increase by a mere 0.2% sequentially but decline 7.6% on year. Shipments will decrease 2.5% sequentially in the fourth quarter, due mainly to seasonal factors, Digitimes Research said.
In addition, 12nm will become the mainstream process technology for the manufacture of smartphone APs for the China market in the third quarter. Of the total smartphone APs shipped to China, 12nm chips will account for nearly 30% while chips built using a more advanced 7nm process will reach around 10% as a proportion of shipments.
Qualcomm will see its shipments affected by the ongoing trade disputes between the US and China in the third and fourth quarters, when shipments of its smartphone APs to China are forecast to drop 3.8% and 2.7%, respectively, on quarter, according to Digitimes Research.
On another front, MediaTek's smartphone AP shipments to China will grow 5.8% sequentially in the third quarter driven by orders from Huawei, Oppo and Vivo. Shipments will drop on a sequential basis but increase 4.6% from a year earlier in the fourth quarter.