LONDON, July 8, 2024
/PRNewswire/ -- 5G smartphones equipped with MediaTek chipsets
experienced robust growth of 53%, increasing to 53.0 million in
1Q24 from 34.7 million in 1Q23, according to the latest Omdia
Smartphone Model Market Tracker. In contrast, Snapdragon-powered
devices remained relatively stable, with shipments changing
minimally from 47.2 million units in 1Q23 to 48.3 million in
1Q24.
MediaTek's market share in 5G smartphones rose to 29.2% in 1Q24,
up from 22.8% in 1Q23, while Qualcomm Snapdragon's share decreased
from 31.2% to 26.5% over the same period. Figure 1 illustrates
MediaTek leading followed by Apple and Snapdragon.
Other chipset manufacturers, such as Exynos, Google, Kirin
and UniSoC collectively account for 17% of shipments. This share
has increased in the past year driven by Kirin's growth,
particularly with the Huawei Mate 60 Pro and Nova 12 series.
Following HiSilicon's announcement to cease Kirin chipset
production from September 15, 2020,
amid ongoing trade tensions between Huawei and the United States, the Kirin 9000s chipset
concluded its production in August
2023.
MediaTek's expansion over Snapdragon in the 5G smartphone market
is largely attributed to the increasing availability of phones
priced under $250 equipped with 5G
chipsets – a segment dominated by MediaTek. According to figure 2,
shipments of 5G smartphones below $250 surged by 62%, from 38.7 million in 1Q23 to
62.8 million in 1Q24. This has particularly favored MediaTek, as it
is the preferred choice in this price range for 5G phones, while
Snapdragon leads in mid-range 5G phones and Apple dominates the
premium segment.
Over the past three years, as most chipset makers shifted from
producing 4G to 5G chipsets, UniSoC has capitalized on the
opportunity to increase its share in the declining 4G market.
UniSoC is now MediaTek's primary competitor in this sector. During
this period, Apple, Exynos and Snapdragon underwent significant
transitions in their chipset portfolios, focusing heavily on 5G
technology. For instance, Exynos reduced its reliance on 4G
chipsets from 77% of smartphone shipments in 1Q21 to just 1% in
1Q24. In comparison, MediaTek continues to use 4G chipsets for over
50% of its shipments.
Aaron West, Senior Analyst in
Omdia's Smartphone group explains: "The smartphone chipset industry
is primarily shaped by two major trends: the widespread adoption of
5G and the expanding low-end segment. As 5G technology becomes more
affordable and is integrated into smartphones priced below
$250, MediaTek stands to benefit the
most. Conversely, on-device AI capabilities are becoming
increasingly important to smartphone OEMs, with Snapdragon emerging
as a key innovator and preferred choice for premium devices."
ABOUT OMDIA
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Contact: Fasiha Khan –
Fasiha.khan@omdia.com
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SOURCE Omdia