When MediaTek overtook Qualcomm to turn out to be the largest smartphone chipset vendor in 2020, it did so by grabbing 31% of the smartphone SoC market. A 12 months later, the Taiwanese firm has not solely managed to carry on to that place however has additionally considerably widened its lead over Qualcomm.
Based on a current Counterpoint Analysis report, MediaTek’s share within the smartphone chipset market — as of Q3 2021 — stands at 40%, exhibiting a rise of seven proportion factors in comparison with the identical interval in 2020. This enhance was bolstered partly by a surge in demand for 4G LTE telephones in rising markets (like India), the place 5G networks are nonetheless a number of years away. As compared, Qualcomm, which had 28% of the worldwide SoC market in 2020, discovered its market share drop to 27%.
Not all appears misplaced for Qualcomm if you take a look at knowledge from one other perspective. The corporate continues to be the undisputed chief within the 5G smartphone chips phase, with a large 62% market share as of Q3 2021. To place issues into perspective, only a 12 months in the past, Qualcomm solely held 32% of the 5G SoC market. In the identical interval, MediaTek’s progress was much less spectacular, growing its share from 25% in 2020 to 28% in 2021.
The expansion of MediaTek and Qualcomm within the 4G and 5G segments appears to have come on the expense of Samsung’s Exynos chipsets, whose market share plummeted from 10% to five% within the span of a 12 months. Issues don’t look nice for Samsung within the 5G house both, the place it noticed its market share fall from 9% to six%. One other notable factor is the truth that the identical interval noticed Apple enhance its market share enhance from 12% to 15%.
A shock entry to the listing this 12 months is Chinese language chipset maker Unisoc, which now has 10% of the market — in comparison with simply 4% a 12 months in the past. Though Unisoc is a comparatively unknown entity within the West, the corporate did handle to chop unique offers with corporations like Honor, Realme, Motorola, ZTE, and Transsion Holdings. Nevertheless, its greatest achievement was a tie-up with Samsung to offer chipsets for a few of its entry-level A sequence units.
One other chipset vendor price mentioning right here is Huawei’s HiSilicon that has been decimated by the U.S. commerce ban. In consequence, the corporate shouldn’t be able to fabricate new Kirin chipsets, and its present stock of chips is on the verge of exhaustion. This has finally led to its market share falling to 4% from a good 13% in 2020.
With the deployment of 5G networks persevering with at breakneck velocity throughout the globe, it appears Qualcomm is better-placed than MediaTek from a progress perspective. Nevertheless, given the tempo at which this phase has advanced, if MediaTek performs its 5G playing cards properly, it may nonetheless pose a big menace to Qualcomm’s dominance sooner or later.