MediaTek's October revenue fell by more than 40% compared with September, and new products were unveiled

MediaTek, a major IC design company, announced on the 10th its revenue for October 2022, which amounted to NT$33.384 billion, a decrease of 40.99% from September and a decrease of 10.77% from the same period in 2021, a new low since March 2021. Cumulatively, the revenue in the first ten months of 2022 was 473.986 billion yuan, an increase of 17.86% over the same period in 2021.

MediaTek previously stated that looking forward to the fourth quarter, under the uncertainty of the global general economic environment and market demand, even though the channel and customer inventory have decreased compared with the previous quarter, most customers are still conservative in placing orders. Therefore, it is expected that the largest impact of these adjustments by customers on our business will be reflected in the fourth quarter. It is observed that customers who had large inventory management earlier recovered some of the momenta in the fourth quarter, which means that there is a chance to see more restocking needs in the first half of 2023.

Overall, MediaTek expects revenue in the fourth quarter of 2022 to be between 108 billion and 119.4 billion at the exchange rate of 1:31.5 between US dollars and Taiwan dollars, a decrease of about 16% to 24% compared with the previous quarter. Compared with the same period, the decrease is about 7%~16%, and the gross profit margin is estimated to be 48.5% ± 1.5%. Therefore, based on the revenue of 33.384 billion yuan in October, the average revenue in November and December of the fourth quarter must reach more than 37.4 billion yuan in order to reach the financial forecast, which is quite challenging.

A few days ago, research firm Counterpoint estimated that MediaTek’s smartphone application processor market share in the third quarter was about 36.5%, down from 39% in the second quarter, but still ahead of Qualcomm, ranking the world’s leader for nine consecutive quarters. Among them, MediaTek’s smartphone application processor shipments declined in the third quarter due to a decrease in orders from major Chinese foundries. However, MediaTek’s market share in the third quarter was still about 36.5%, ranking the world’s leading position, followed by Qualcomm.

In addition, MediaTek has been ahead of its competitors by releasing the Dimensity 9200 mobile processor built on TSMC’s 4nm process. It is hoped that with breakthroughs in high performance, high energy efficiency, and low power consumption, Lengjin’s full-speed user experience will be used to create a new flagship 5G SoC for the mobile market. Dimensity 9200 empowers mobile terminals with advanced technology to create professional-grade images and immersive gaming experiences support Sub-6GHz and millimeter-wave 5G networks, and the upcoming high-speed Wi-Fi 7 networking, promoting the upgrade of the global mobile experience. The flagship 5G mobile chip smartphone equipped with the Dimensity 9200 is scheduled to be launched at the end of the year, adding momentum to MediaTek in the field of flagship smartphone mobile processors.

Mohmed Abdelaziz

A journalist and reviewer with extensive experience in programming and social media, he has a strong CV in the field of technology. You can contact him via e-mail: [email protected]

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