Qualcomm, which has been dominating the inexpensive premium smartphone section ($250-$500), is poised to face stiff competitors from MediaTek with its Helio G90 collection chipsets.
Shobhit Srivastava, analysis analyst for cellular units and ecosystem at Counterpoint Analysis, instructed TechRadar Center East that MediaTek has extra inexpensive chipsets and plenty of Chinese language OEMs are utilizing it to diversify their provide chain and wish to have units in each worth section.
Within the premium section, he mentioned that Apple, Huawei and Samsung have their very own chipsets after which comes the third-party suppliers akin to Qualcomm and MediaTek.
In keeping with analysis firm Statista, Qualcomm had 45% general market share in 2018, adopted by Apple with 17%, Samsung with 14%, MediaTek with 11% and Huawei with 8%.
In keeping with Counterpoint’s preliminary information within the second quarter, MediaTek had 40.3% share and Qualcomm had 32.5% in underneath $149 worth section; MediaTek had 6.4% share and Qualcomm had 43% in $249-$599 worth section whereas MediaTek had 0.3% share and Qualcomm had 21.7% in above $599 worth section.
Within the Center East and Africa area, MediaTek had 51% share and Qualcomm had 10.7% in underneath $149 worth section; MediaTek had 5.8% share and Qualcomm had 44.8% in $249-$599 worth section whereas MediaTek had 0% share and Qualcomm had 4.6% in above $599 worth section.
Chinese language gamers take lead
“MediaTek has a really small share within the premium section. Within the inexpensive premium section and gaming smartphone, MediaTek can achieve market share from Qualcomm. OnePlus, Xiaomi, Oppo and Vivo are main gamers on this worth section,” Srivastava mentioned.
The inexpensive premium section constitutes almost one-fifth of the whole smartphone market.
Srivastava mentioned that the brand new G90 collection chipsets are a direct competitor to Qualcomm’s Snapdragon 600 and 700 collection.
The brand new G90 and G90T chipsets are gaining traction amongst main Chinese language gamers.
Xiaomi has already introduced a gaming telephone with the Helio G90T chipset for launch within the first quarter of subsequent yr.
Srivastava mentioned that Chinese language OEMs like Oppo and Vivo’s give attention to the gaming smartphone market and the inexpensive premium section can bode nicely for MediaTek’s new chipsets.
The Taiwanese chipmaker has ramped up its product portfolio in the previous couple of years with the Helio P and Helio A collection chipsets.
The low-cost Helio P22 and the Helio A22 chipsets have been among the many best-selling chipsets through the second quarter of this yr.
Proper worth level is important
With the brand new G90 and G90T collection, Srivastava mentioned that MediaTek is planning to seize a slice of the gaming market and dent Qualcomm’s dominance.
Concerning expertise, Srivastava mentioned that Qualcomm has an edge over MediaTek however giving it on the proper worth level can be necessary.
Counterpoint information additionally present that gaming smartphones have a shiny future.
In keeping with a survey carried out by the analysis agency, 31% of smartphone homeowners are gaming for over three hours a day on their units.
“All in all, the brand new G90 and G90T collection will present MediaTek with a stronger aggressive edge because it seeks to increase its share in greater worth bands,” he mentioned.
Furthermore, after declining for six straight quarters, he mentioned that 5G goes to drive smartphone development subsequent yr.
“Qualcomm has first-mover benefit and has partnered with many OEMs. When MediaTek comes out with its 5G chipsets, it’ll come out at an inexpensive worth level,” he mentioned.