MediaTek is Suffering Too; Posts Lower Q2 2015 Results

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Not too long ago, Qualcomm posted some of their worst figures in a long, long time. A lot of things came to a head this year for Qualcomm, and it looks as though the company will have to cut jobs and reduce their overall footprint in the semiconductor industry. It’s not just Qualcomm however that seem to be suffering this year, as MediaTek have now posted their figures for Q2 2015, and while the figures aren’t quite as bad as Qualcomm’s, they’re far from happy reading. Citing less demand and increased competition, MediaTek is feeling the heat as well.

According to DigiTimes MediaTek posted consolidated revenues of NT$47.04 billion (US$1.49 billion) which might only be 1% down from the previous quarter, but is a worryingly 13.1% down from the same period last year. That might not be a massive drop, but considering MediaTek started shipping more competitive chips this year, it isn’t the result that the company was looking for, we’re sure. On top of this however, the company posted net profits of NT$6.38 billion ($202.25 Million) which is the lowest reported for 9 quarters at MediaTek. Even if these figures are comfortable when compared with the losses that Qualcomm have endured it could be writing on the wall.

According to MediaTek, heightened competition and less demand are the driving forces behind the latest figures, which seems to be something everyone is experiencing these days. However, as Chinese brands move to the Snapdragon 410 and Snapdragon 615 for lower-end devices, it does seem that MediaTek is losing out somewhat. Where MediaTek need to be with their new line of Helio chips is in higher-end devices. Convincing those in the West that a Chinese company can be trusted will be the real test. Having said that, the introduction of Samsung’s Exynos 7420 on all US carriers is a positive sign for anyone else looking to start selling 4G smartphones in the US. Another reason for the fall in profits could be that manufacturers such as OnePlus, Xiaomi and Huawei, all known for lower-end devices have turned inward or to Qualcomm. Could this be the beginning of a long dry spell for MediaTek and co? Only time will tell.