MediaTek’s 5G Strategy Pays Off: Market Leader in Q1 2024
Recently, market research firm Omdia released its market tracking report for 5G smartphone chips in the first quarter of 2024, showing that MediaTek has surpassed Qualcomm to take the top spot. Omdia noted that the smartphone chipset industry is primarily influenced by two major trends: the widespread adoption of 5G and the expansion of the low-end market. As 5G technology becomes more affordable and integrated into smartphones priced under $250, MediaTek has emerged as the biggest beneficiary.
MediaTek’s shipments in the first quarter of 2024 reached 53 million, a significant 52.7% increase compared to 34.7 million in the first quarter of 2023, surpassing Qualcomm to secure the leading position. In contrast, Qualcomm’s shipments remained relatively stable, growing from 47.2 million in the first quarter of 2023 to 48.3 million in the first quarter of 2024, showing little numerical change. However, in terms of market share, Qualcomm’s share dropped from 31.2% in the first quarter of 2023 to 26.5% in the first quarter of 2024, a notable decline, while MediaTek’s share rose from 22.8% in the first quarter of 2023 to 29.2% in the first quarter of 2024.
MediaTek’s expansion in the 5G smartphone chip market is mainly attributed to its dominance in the sub-$250 segment. Statistics show that the shipment of 5G smartphones priced below $250 surged by 62%, increasing from 38.7 million units in 2023 to 62.8 million units in 2024. This trend greatly favored MediaTek, as it has long been the preferred choice in this price range. Qualcomm’s Snapdragon series leads the mid-range 5G smartphone market, while the high-end market is dominated by Apple.
Other SoC manufacturers, such as Samsung, Google, Huawei, and Unisoc, collectively accounted for 17% of the shipments. Over the past year, Huawei’s market share has increased, driven by the Mate 60 Pro and Nova 12 series. Unisoc has capitalized on the transition of other manufacturers from 4G to 5G, enhancing its share in the declining 4G market and becoming a major competitor to MediaTek in this segment.
