Analysts warn of slowing growth in MediaTek

26 April 2017, 08:20 | Technologies
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Market experts predict a slowdown in revenue growth MediaTek. It is expected that sales of the Taiwanese vendor in April-June 2017 will increase by only 10-15% on a quarterly basis, while earlier observers spoke of a growth rate of at least 20%.

In the first quarter of 2017, MediaTek recorded revenue of 56.08 billion Taiwan dollars (1.9 billion US dollars), which is 18.3% less than in the previous quarter. Also, industry sources DigiTimes previously reported that in January-March, shipments of processors for the smartphones MediaTek fell below 100 million units.

On April 28, MediaTek scheduled a meeting of shareholders, at which the company will report on financial performance in the past quarter and will present a forecast for the current three-month period. Observers believe that the outlook will be restrained, and MediaTek will focus on maintaining its position in the smartphone chip market.

Meanwhile, the Taiwanese vendor has already lost some customers.

According to sources, several Chinese vendors, who previously purchased MediaTek chips of medium and high-end, did not place new orders from the company.

MediaTek still remains competitive in the segment of less expensive chips, but the profitability of the company falls due to the fact that competitors aggressively reduce prices. This is what the financial indicators say for 2016: although MediaTek registered a record revenue of 275.5 billion Taiwan dollars, its gross margin fell to 35.6%, the lowest in the company's history.




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