5G technology is expanding rapidly. What was once exclusive to flagship models can now be found in mid-range and even entry-level smartphones.
Naturally, this fast-growing market has ignited competition among various companies. For example, Qualcomm and MediaTek are in a fierce battle to secure their places in more smartphones.
Have you ever wondered who is leading this competition? A recent study provides the answer. Here are the details…
MediaTek Surpasses Qualcomm Snapdragon in the 5G Smartphone Market
A study by Omdia has identified the more successful chipset manufacturer in the 5G market. According to the report, Qualcomm, long a dominant player due to its flagship phone popularity, has been overtaken by MediaTek.
In the first quarter of 2023, smartphones with MediaTek’s 5G processors numbered 34.7 million. This figure surged by 53% to 53.0 million in the first quarter of 2024.
Meanwhile, devices powered by Snapdragon remained relatively stable, with shipments changing slightly from 47.2 million units in Q1 2023 to 48.3 million in Q1 2024.
Market Share Dynamics
When it comes to market share, MediaTek leads with 29.2%. Apple follows with 27%, and Qualcomm holds 26.5%. Other chipset manufacturers, including Samsung, Google, Huawei, and UniSoC, collectively make up 17% of shipments.
This increase is partly due to the growth of Kirin, driven by the Huawei Mate 60 Pro and Nova 12 series. MediaTek’s rise is not without reason. Its biggest advantage over Qualcomm is its pricing.
For instance, if you aim to sell a smartphone for around $250 and need a 5G chipset, MediaTek is a favorable option. However, despite its success, profitability remains a challenge for MediaTek.
Profitability and Market Strategy
Yes, MediaTek sells more processors than Qualcomm. Yet, Qualcomm earns more profit per unit sold, affecting budgets for R&D and growth. This mirrors the situation between Apple and Samsung for years.
Nevertheless, regardless of the background, MediaTek has once again managed to outpace Qualcomm.
