Tablet application processor (AP) shipments to China are estimated to grow 18.6% sequentially in the second quarter of 2015 to reach about 29 million units as demand from the end market starts to recover. Top-3 suppliers in China's tablet AP market, MediaTek, Rockchip and Intel, together will contribute 59.1% of total tablet AP shipments in the second quarter, down 0.8pp from a quarter ago. Intel will be the third-largest supplier for the second consecutive quarter.
As China's tablet ecosystem is approaching maturity and the market is seeing fierce competition, demand for tablets is unlikely to see much growth. Compared to the second quarter of 2014, tablet AP shipments to China were down 6.4% and has been dropping since the first quarter of 2015, Digitimes Research's figures showed.
After a sharp shipment decline in the first quarter of 2015, MediaTek will be able to achieve shipment growth in the second quarter thanks to clients' recovering demand. MediaTek's shipment share in China's tablet AP market will also slip from 24.3% in the first quarter to 23.9% in the second.
Rockchip and Intel will both enjoy sequential shipment growths in the second quarter of 2015 as clients have increased orders.