MediaTek Registers 13 Percent Revenue Losses In July 2017

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According to a recent report, Taiwan-based semiconductor company MediaTek has registered lower revenues in the month of July compared to a month ago and a year before. The chipset manufacturer’s revenues for the month of July decreased by 13.4 percent compared to the month of June, and revenues are down 23.6 percent compared to the figures recorded in July 2016. However, market watchers expect the company’s monthly revenues to stabilize and exceed NT$ 20 billion ($662 million) within the next couple of months.

MediaTek seems to have had a rather tough year so far, with earlier reports suggesting that the company is losing market share in China due to the increasing success of US-based semiconductor company Qualcomm. In addition, despite the impressive technical specifications of the Helio X30 chipset introduced at Mobile World Congress 2017 back in February, the company quickly found that demand was lower than expected, with LeEco scrapping its plans for adopting the new silicon due to financial difficulties, and the usual customers including Vivo, OPPO, and Meizu not being in a rush to acquire the new chipset for their latest devices. Having said that, MediaTek appears to be losing ground and according to recent reports, the company’s revenues totaled NT$ 133.13 billion ($4.4 billion) over the first seven months of 2017, representing a decrease of 13.1 percent compared to a year before. Consolidated revenues for the month of July 2017 have topped NT$ 18.97 billion ($627 million) representing a 23.6 percent decrease on year, however in the first quarter in 2017, gross margin grew from 33.5 to 35 percent, while in the second quarter of the year revenues increased by 3.6 percent to NT$58 billion ($1.92 billion).

MediaTek expects revenue to grow by 2-10 percent between NT$ 59.2 billion ($1.96 billion) to NT$ 63.9 billion ($2.11 billion) in the third quarter of the year, whereas market watchers expect MediaTek’s monthly revenues to once again surpass the NT$ 20 billion ($662 million) mark in August and September 2017. In any case, it’s worth noting that MediaTek doesn’t seem to have any new high-end chipsets planned for release before the end of the year, and unfortunately, demand for the Helio X30 is nearly non-existent as the two only devices currently employing the aforementioned silicon are the Elephone X8 Lite and the Meizu PRO 7 Plus which was unveiled in late July alongside a lower-priced variant powered by the Helio P25 SoC.