A Taiwanese semiconductor firm, MediaTek is creating chipset solutions for the global market. Now, the report from one of the Taiwanese media states that the company has seen a huge drop in terms of chipset shipments in the first quarter of 2017.
The report reveals the fact that the shipments fell below 100 million and the second quarter can rebound only to 10-120 million shipments. If you observe the sales this year, it might look like a large number. But when you compare it with 2016's shipment record of 480 million chipsets, you will know where it stands now. It sounds difficult to achieve the target which they saw previous year.
Because a large number of chipset orders are made normally during the first half of any year. So, it will be hard for MediaTek to achieve a great number of sales in the second half of 2017.
It is said that the shift of many China-based customers from MediaTek to Qualcomm is a major reason for this huge drop in shipment. In terms of shipment, China was the biggest source for MediaTek. Companies such as Meizu, Xiaomi, Oppo, and Vivo have shifted few portion of their orders to MediaTek's rival Qualcomm.
This resulted in such a tremendous loss. Helio X30 is the latest flagship chipset of MediaTek and it is yet to be adopted by any big manufacturers. Another saddest part for them is, the Qualcomm has seen a rise by more than 30% in the mobile phone chip share whereas, MediaTek is having less than 40%.
It looks like 2017 turned out to be a hard year for MediaTek.