MediaTek is gearing up for a pick-up in high-end smartphone sales during the second half of this year with its recently launched 4nm Dimensity 9000+ series SoC, according to industry sources.
Mobile phone brands including Samsung Electronics and Chinese ones have revised downward mobile phone shipment targets for 2022, owing to weak market prospects, the sources said.
Supply chain sources have also confirmed that major mobile phone application processor (AP) manufacturers MediaTek and Qualcomm have reduced AP production volume for the second half. However, it is understood that both companies have certain expectations for flagship APs during the period, resulting in the production and shipment of their respective Dimensity 9000+ and Snapdragon 8+ Gen 1 going ahead as originally planned.
Based on data from various mobile phone AP review sites, the performance of the Dimensity 9000+ and Snapdragon 8+ Gen 1 are comparable. While the Dimensity 9000+ scores slightly better than its rivals in both single-core and multi-core, the overall difference is not significant. In terms of actual performance in the mobile phone system, it will have to wait until phones are launched before comparisons can be made.
MediaTek and Qualcomm have both previously emphasized that high-end phone models and specification upgrades are key to supporting 2022 operations. Supply chain companies have also observed that even though MediaTek has successively reduced orders for various APs, there has been little change in the pull-in period for the Dimensity 9000+, showing that MediaTek still has confidence in the flagship AP market.
It has been reported that an excessive inventory problem has emerged for Samsung and its popular A Series smartphone models. In fact, the biggest victims of inflation in 2022 will be entry-level and mid-range phone models. Other mobile phone brands that previously wanted to adopt affordable phone strategies to maintain shipment volume will find that rapid market changes will make this difficult to obtain. On the contrary, it is the flagship and high-end model sales that are most stable.
Additionally, the practice of introducing classic easy-to-use, low-cost older processors to reduce overall phone costs and sale prices is no longer as effective.
Aside from a few previous generation flagship processors being used in mid-range and high-end smartphone models that still deliver good sales performance, on the whole, most consumers will still choose to purchase new smartphones over devices with older processors, despite a reduction in disposable income for electronics.
Consumer behaviors such as this are a relief for MediaTek and Qualcomm because it gives them the opportunity to continue increasing the sales proportion of high-specification smartphone APs that have higher unit prices.
The sources pointed out that MediaTek and Qualcomm have been firm on flagship AP prices. MediaTek prefers to give discounts through other cooperation models and has been unwilling to arbitrarily reduce prices.
Those familiar with the market believe that based on past experience, both the Dimensity 9000+ and Snapdragon 8+ Gen 1 will be introduced into Chinese brands' high-end smartphones starting in the third quarter, with shipments peaking in the fourth quarter. Despite reports of order cuts at this stage, sales of high-end phone models are unlikely to see a significant decline.
Article translated by Eifeh Strom
