According to new figures from Omdia’s Smartphone Model Market Tracker, shipments of 5G smartphones powered by Taiwan based MediaTek reached 53 million in the first three months of the year, representing an impressive 53% uptick on Q1 2023. Shipments of smartphones with Qualcomm’s Snapdragon inside were comparatively flat, inching up to 48.3 million from 47.2 million.
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.
As a result, MediaTek’s market share in the 5G smartphone chipset market increased to 29.2% from 22.8%, while Qualcomm’s fell to 26.5% from 31.2%. Apple is third, while a Samsung owned Exynos, Huawei-owned HiSilicon’s Kirin, Google Tensor and Shanghai-based Unisoc make up the rest (see chart below).
Notes:
It’s not clear whether Omdia includes both processors and 5G modem chip sets in their statistics.
Apple uses in-house processors for its iPhones, but it still relies on Qualcomm for the 5G modem chips.
Both MediaTek and Qualcomm sell SoC’s which include both a 4G/5G modem and an ARM processor.
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According to Omdia, Q1 shipments of 5G smartphones below $250 surged by 62% year-on-year to 62.8 million. This favors MediaTek as the preferred choice for this segment. Furthermore, in June, Omdia also reported in booming demand for sub-$150 phones, with shipments in this category growing to 120 million in the first quarter, up from 90 million a year earlier.
“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,” explained Aaron West, senior analyst in Omdia’s smartphone group.
The premium end of the market, where prices start at $600, is also growing – albeit not as rapidly. According to Omdia, shipments increased to 73 million from 70 million, driven by the launch of Samsung’s Galaxy S24 series, and the iPhone 15 Pro Max.
The popularity of premium devices should help Qualcomm come roaring back – it has spent much of this year promoting the on-device AI capabilities of its latest Snapdragon chipset, features that will be incorporated first and foremost into pricier handsets.
“On-device AI capabilities are becoming increasingly important to smartphone OEMs, with Snapdragon emerging as a key innovator and preferred choice for premium devices,” West said.
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Other Voices:
According to Markets and Markets, the global 5G chipsets market size is estimated to be USD 36.29 billion in 2023 and is projected to reach USD 81.03 billion by 2028 at a CAGR of 17.4%.
Grandview Markets says the global 5G chipset market size was estimated at USD 39.32 billion in 2023 and is expected to grow at a CAGR of 20.7% from 2024 to 2030.
References:
https://www.lightreading.com/5g/mediatek-outgrowing-qualcomm-snapdragon-in-the-5g-smartphone-market-omdia
https://www.telecoms.com/mobile-devices/rise-of-cheaper-5g-phones-lifts-mediatek-above-qualcomm
https://www.marketsandmarkets.com/Market-Reports/5g-chipset-market-150390562.html
https://www.grandviewresearch.com/industry-analysis/5g-chipset-market
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