MediaTek’s New Smartphone Chip Shortage Bumps Prices, Annual Shipment May Reach up to 100 Million Units

21 Aug

Recently, there’s been a lot of hype regarding the massive shortage of MediaTek’s smartphone chips, whose “gone by the second,””one day one price” reputation made them popular, widely pursued items within the market. The 3G version of the chip has seen its price mark rise up 1.5 times, whereas the other versions have enjoyed as much as a 40% price increase. With the demand far exceeding what MediaTek had originally anticipated, many within the market have begun to wonder whether expectations towards the Taiwanese company’s quarterly performance should be raised. At the current phase, the 3G version chips represent about 60% of the company’s sales. By 4Q12, that figure is expected to rise up to 80%.

Regarding MediaTek’s 2012 shipment estimates, TrendInsider believes that the total quantity could reach between 95 million units to 100 million units, far surpassing the original 31 million units released during 1H12. The favorable increase, in a way, can be attributed to the good reputation earned by the Taiwan-based company’s middle to high end 3G “MT6575” chip and the duo core mobile phone chip. Much attention has been directed towards the former, which is known by the “gone by the second” reputation and has become a huge, go-to target within the market. While the official price for the 3G chip is listed at around the $14 to $15 USD range (about $420 to $450 NTD), the market price has increased to as high as $38 USD (approximately $1440 NTD). The price increase rate shows that people are willing to get their hands on product even if it means paying one times the original price.

The duo core“MT6577,”on the other hand, is known for its effective cost and for leading the competitors during the first quarter, and is recently making a similarly huge impact on the Chinese market. The “MT6515”chip, similar to the 3G chip, has seen its price grow from $6 USD ($180 NT) to $13.5 USD ($405 NT).

Given that MediaTek’s chips are experiencing a major shortage, distributers with the product at hand have engaged in various techniques, going as far as to offer the products at the “one day one price” strategy. With the explosive demand from even China’s third to fourth tiered cities, along with MediaTek’s ever growing business ambitions, the company’s performance is expected to grow exponentially.

MediaTek   Smartphone Chip Series
Category Model Specs Shipment
MT6573 WCDMA 3Q11
3G MT6575 3.5G/HSUPA/TD-SCDMA   Single Core 2Q12


2.75 G   (EDGE) MT6516 GSM/GPRS/EDGE   Duo Core
MT6513 GSM/GPRS/EDGE   Duo Core





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