MediaTek's 5G smartphone shipments surged by 53% in the first quarter of 2024, according to the latest Omdia Smartphone Model Market Tracker.
This growth has significantly helped with MediaTek outpacing its chief rival, Qualcomm's Snapdragon.
MediaTek's 5G smartphone shipments surged 53% in Q1 2024, outpacing Qualcomm and gaining market share due to affordable 5G phones.MediaTek
MediaTek's Impressive Growth
According to the report, MediaTek's 5G smartphone shipments increased from 34.7 million units in Q1 2023 to 53.0 million units in Q1 2024.
This substantial growth has improved MediaTek's market share in the 5G smartphone sector, rising from 22.8% to 29.2% over the same period.
A major factor contributing to MediaTek's surge is the increasing availability of affordable 5G smartphones.
Phones priced under $250, a segment where MediaTek is particularly strong, saw a 62% increase in shipments, from 38.7 million units in Q1 2023 to 62.8 million units in Q1 2024.
This segment's growth has particularly favored MediaTek, making it the preferred choice for consumers seeking budget-friendly 5G phones.
In addition, Canalys reported in March that Mediatek powered more devices than any other chipmaker in the final quarter of last year, with a 21% year-over-year increase.
In contrast, Qualcomm's Snapdragon 5G smartphone shipments remained relatively stable, with a slight increase from 47.2 million units in Q1 2023 to 48.3 million units in Q1 2024. Consequently, Snapdragon's market share declined from 31.2% to 26.5% over the same period.
While Snapdragon continues to lead in the mid-range 5G phone segment, Apple dominates the premium segment. According to Counterpoint data, Apple remains the undisputed leader in the premium market, with a 71% share, down four points from last year.
5G Smartphone Market
The 5G smartphone market is not solely dominated by MediaTek and Snapdragon. Other chipset manufacturers, such as Exynos, Google, Kirin, and UniSoC, collectively account for 17% of shipments.
This share has increased over the past year, driven by the growth of Kirin chipsets, particularly with the Huawei Mate 60 Pro and Nova 12 series.
Notably, Huawei's HiSilicon ceased production of its Kirin chipsets in August 2023, following ongoing trade tensions between Huawei and the United States. Despite this, Kirin's existing models have continued to contribute significantly to Huawei's market presence.
The Global Shift to 5G Chipsets
The shift from 4G to 5G chipsets has been a significant trend over the past three years. As most chipset makers transitioned to 5G, UniSoC capitalized on the declining 4G market, becoming MediaTek's primary competitor in this sector.
During this period, Exynos significantly reduced its reliance on 4G chipsets, from 77% of smartphone shipments in Q1 2021 to just 1% in Q1 2024. Conversely, MediaTek still uses 4G chipsets for over 50% of its shipments.
MediaTek is also making moves in the personal computer sector, challenging established players like Apple and Intel in the broader tech market. According to a Reuters report, MediaTek is developing an Arm-based PC chip designed to run Microsoft's Windows operating system.
