MediaTek Faces Eroded Smartphone Growth

Alan Patterson, EETimes
8/19/2015 08:54 AM EDT

TAIPEI — MediaTek’s rapid growth in 4G smartphones is likely to be undermined by handset makers in China who are designing their own chips, according to an analyst who covers the tech industry in Asia.

Emerging markets such as India, Brazil and Indonesia that are expected to lead smartphone growth in coming years are mainly buying phones based on 3G and even 2G technology. While MediaTek, the world’s third-largest chip designer, enjoys a market share of about 50% in 3G smartphones, Chinese rivals such as Spreadtrum Communications and Huawei are eroding that position on strong price competition, according to Mark Li, a senior analyst with Bernstein in Hong Kong.

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