Qualcomm’s Snapdragon 888 chip will be used in premium Android devices that can cost more than $ 1000.
According to a new report, Qualcomm’s share of the Chinese smartphone ship market has fallen in 2020 due to US sanctions against Huawei.
As a result, the country’s domestic mobile players have turned to alternatives such as MediaTek in Taiwan, according to CINNO Research.
Last year, 307 million smartphones with the so-called system on chips (SOC) were shipped in China, down 20.8% year-on-year, the report said.
SOC is a type of semiconductor that contains many components required for a device to run on a single chip, such as a processor. They are a crucial part for smartphones.
Qualcomm’s shipments in China shrank 48.1% year-on-year, CINNO Research said without disclosing details on the number of Qualcomm chips shipped. The US giant’s market share in China fell to 25.4% in 2020 versus 37.9% in 2019.
MediaTek No. 1
Taiwanese MediaTek benefited from all that pent-up demand. The chip designer took advantage of the woes of Huawei and Qualcomm and also let major Chinese smartphone makers use his chips.
“As far as we know, (for) OPPO, Vivo and Xiaomi and Huawei, MediaTek’s share has grown tremendously,” CINNO Research told The Washington City Times in a statement from its analysts.
Huawei is the largest smartphone maker in China in terms of market share, followed by Vivo, Oppo and Xiaomi.
Many of these players make mid-price phones with high specifications. This is where MediaTek has performed well in gaining market share.
The US sanctions against Huawei have also forced other Chinese players to look for alternatives if they were cut off from the likes of Qualcomm.
“ This (is) not only because of (of) the excellent performance of MediaTek’s mid-end platform, but it is also undeniable that the US has imposed a series of sanctions on Huawei & Hisilicon, forcing major manufacturers to more diversified, stable and reliable suppliers, ”said CINNO Research in a press release.
Xiaomi was recently added to a US blacklist of alleged Chinese military companies, although it is unclear whether this will affect their ability to procure certain components.
5G market for the taking
China is the world’s largest market for 5G smartphones. 5G refers to next-generation mobile internet and chip makers are vying for a slice of the pie.
“After the first year of 5G, let’s look at the changes in the smartphone SOC market in China. It shows that the market pattern has changed from a single dominant Qualcomm company in the 4G era to a three-party pattern of Hisilicon,” Qualcomm. And MediaTek by 2020, ”said CINNO Research.
Last year, Qualcomm launched a new line of 5G smartphone chips known as the 6 Series and 4 Series, which could eat up MediaTek’s market share in China.
“The launch of Qualcomm’s 6- and 4-series 5G chipset will help remove MediaTek’s share of the fast-growing 5G smartphone segment in China,” said Neil Shah, a partner at Counterpoint Research.