The latest report from Counterpoint Research provides valuable insights into the smartphone application processor (AP) market, covering the period from Q4 2021 to Q1 2023. This report reveals interesting trends and shifts among the key players in the industry. In the first quarter of 2023, MediaTek emerged as the dominant force in the smartphone processor market, although it experienced a decline compared to the previous quarter. This article delves into the details of the report, shedding light on the performances of MediaTek, Qualcomm, Apple, UNISOC, Samsung, and Huawei Hisilicon, while also discussing the potential implications for the industry.
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MediaTek’s Dominance and Decline
MediaTek secured a 31% market share in the smartphone AP market during Q1 2023. However, the company witnessed a decline in both quantities and market share compared to the previous quarter. The decline can be attributed to inventory adjustments and weak demand, resulting in a projected decline of over 5% in LTE SoC shipments and less than 5% growth in 5G SoC shipments for Q2 2023. Analysts anticipate a rebound for MediaTek in the second half of the year as inventory levels stabilize.
Qualcomm’s Position and Outlook
Qualcomm, a prominent player in the AP market, captured a 28% market share in Q1 2023. Its shipments are expected to remain flat in Q2 2023 due to inventory reductions, which are anticipated to normalize in the coming quarters.
Apple, renowned for its proprietary chipsets, held a 26% market share. However, chipsets are predicted to decline in Q2 2023 due to seasonality. Despite this, iOS outperformed the Android market and demonstrated resilience against weak demand.
Samsung’s Performance and Product Offerings
Samsung experienced a slight increase in shipments during Q1 2023, thanks to the launch of Exynos 1330 and 1380 chipsets. These offerings catered to both high-end and low-end market segments, leading to improved sales.
UNISOC’s Growth in the Low-End Segment
UNISOC, specializing in the low-end segment, witnessed a marginal increase in shipments during Q2 2023, fueled by the growing demand for its LTE portfolio in devices priced below $99.
Huawei Hisilicon’s Potential Comeback
Huawei Hisilicon, currently with less than 1% market share, may make a comeback with a new mobile phone chip expected to launch in the near future. Counterpoint analysts project shipment volumes of around 2-4 million units for Huawei HiSilicon in 2023, primarily targeting the mid-range segment.
Implications of OPPO’s Decision
Counterpoint analysts also highlighted the positive implications of OPPO’s decision to abandon its chip development plans for both MediaTek and Qualcomm, since that means one less competitor to worry about. The anticipated rebound of MediaTek, the potential market entry of new players, and the collaborative possibilities underscore the evolving nature of the smartphone AP market, promising exciting advancements in the near future.
In conclusion, the latest report from Counterpoint Research provides valuable insights into the smartphone application processor market, highlighting the dominance of MediaTek, the positions of Qualcomm and Apple, the performance of Samsung and UNISOC, the potential comeback of Huawei Hisilicon, and the implications of OPPO’s decision. The industry’s dynamic nature promises exciting advancements and collaborations in the future.
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