Of late, MediaTek chipsets have witnessed a surge in demand thanks to their price to performance factor. More smartphone companies have been adopting them in their affordable to mid-tier offerings. However, the ongoing global semiconductor shortage and supply constraints have disrupted the business of MediaTek, like it has for most other chipmakers. Due to these issues in procurement and supply of chipsets, MediaTek is apparently deciding to increase the price of its chipsets by almost 15%. A hike in prices will allow MediaTek to score a better performance and earn more profits despite these supply issues.
MediaTek Price Hike: Cause and Effect
It is reported that the 4G LTE chipsets will primarily witness this price rise. MediaTek’s 4G chips have a high demand in markets like India where 5G is still a distant reality.
As for the price hike, it will be as high as 15% of the 4G chipsets and 5% of the 5G ready chipsets. The primary reason behind the hike is the increase in the overall cost of production by the TSMC foundry.
Anyways, this means that the smartphones using these processors will also undergo a price hike that will eventually affect the pockets of consumers.
The company itself hasn’t announced anything about the price hike yet.
In other news, MediaTek has managed to retain its top spot with a sizable 38% market share in the global application processor market for smartphones in Q2. Dimensity 700 series dominates the 5G market whereas Helio P35 and Helio G80 are popular in the 4G LTE segment.
The chipsets by MediaTek have become popular across both mid-range and entry-level smartphones alike.
Meanwhile, its rival SoC maker Qualcomm is in the second position with a market share of 32-percent. It owes its market share to its processor’s popularity in the high-end 5G market.