MediaTek led India's 5G market in H1 2024, surpassing Qualcomm
What's the story
Taiwanese chipset giant MediaTek is gearing up to take on its American rival Qualcomm, in the high-end 5G segment. The move comes as more Chinese smartphone makers are choosing MediaTek's cutting-edge systems for their premium offerings. In the first half of this year, MediaTek led the overall 5G market in India with a whopping 51% share, ahead of Qualcomm's 32% stake.
Market share
Market position and future aspirations
In the upper-mid-range smartphone segment (above ₹30,000), Qualcomm dominates with a 34% share. Apple comes second at 27%, followed by Samsung at 24% and MediaTek at 14%. However, despite this, Finbarr Moynihan, Vice-President of Corporate Marketing at MediaTek, is hopeful about the company's growth in this segment. He said their premium share is lower than competitors' but is growing rapidly with success in other markets.
Growth strategy
Dominance in sub-₹30,000 5G smartphone segment
Not just the largest chipset supplier in India's smartphone market, MediaTek is also a major player in the transition from 4G to 5G devices. The company is leveraging this shift and the premium device trend to bolster its presence, particularly in the ₹30,000-plus segment. According to Counterpoint Research, MediaTek claimed a whopping 64% market share in the sub-₹30,000 5G smartphone category in H1 of this year.
Market dynamics
MediaTek's share surge and Qualcomm's decline
MediaTek's sub-₹30,000 5G smartphone segment share increased by 23% to 64% in H1 of this year, up from 41% a year ago. Meanwhile, Qualcomm's share declined by 11% from 42%. Analysts credit MediaTek's growth to aggressive pricing and strong partnerships with Chinese brands such as OPPO, Vivo, Xiaomi, and Realme that dominate nearly three-quarters of India's sub-₹30,000 smartphone market, collectively controlling around 75% of market share.
Global reach
Global dominance and revenue growth
Globally, MediaTek competes with Qualcomm, China's UNISOC, and South Korea's Samsung in the mobile SoC space. Moynihan revealed that since 2020, their global share has fluctuated between 35% and 40%. He also highlighted that their position in the Indian market surpasses this global average. The Dimensity 9000 series has been a strong revenue generator for MediaTek, contributing $1 billion to the company's total revenue of just under $14 billion last year.
Competitive stance
Response to Qualcomm's $100 5G chipset
In response to Qualcomm's launch of a $100 5G chipset for the Indian market, Moynihan said MediaTek has been providing its Dimensity 6000 series chipsets for the entry-level 5G segment for years. He remains confident about their product, saying, "We don't see any particular competition from Qualcomm's $100 5G chipset." MediaTek India's Managing Director Anku Jain also stressed that their chipsets support both standalone and non-standalone 5G technologies.