MediaTek Overtakes Qualcomm to Become India’s Leading Smartphone Chipmaker

MediaTek, a Taiwanese company that makes smartphone chips, has surpassed its American competitor Qualcomm to become the top player in India’s booming 5G market, which is the second-largest smartphone market in the world.

According to data from Counterpoint Research, around 64% of all 5G smartphones priced under ₹30,000 sold in India during the first half of 2024 were powered by MediaTek chips. Qualcomm lagged behind with a 31% share. MediaTek’s share in the sub-₹30,000 5G smartphone category jumped 23 percentage points from 41% a year ago, while Qualcomm’s share dropped 11 points from 42%.

Counterpoint estimates that India saw 50-52 million 5G smartphone shipments in the first half of this year. Smartphones priced between ₹8,000 and ₹30,000 made up nearly 75% of these shipments, totaling about 38-40 million units. The remaining 25% were premium and super-premium 5G phones, priced between ₹30,000 and ₹1.6 lakh.

“MediaTek now leads the sub-₹30,000 segment, which represents most of the 5G smartphones in India,” said Tarun Pathak, a research director at Counterpoint. He attributed MediaTek’s success to competitive pricing, energy-efficient chipsets, and strong partnerships with Chinese manufacturers, who control around 75% of the budget smartphone market in India. Pathak noted that Qualcomm’s decline in this segment is partly due to its focus on premium devices.

MediaTek India’s managing director, Anku Jain, emphasized that India is a price-sensitive market. The company’s commitment to 5G technology has made it a significant player in making high-speed connectivity accessible, especially in the budget segment. Jain added that MediaTek’s mainstream chipsets now support high-end features like 10-bit displays, high-resolution cameras, and fast performance.

Qualcomm did not respond to requests for comments.

Navkendar Singh, an AVP at IDC Asia Pacific, noted that MediaTek has gained an advantage over Qualcomm in recent quarters by leveraging aggressive pricing strategies and securing deals with popular Chinese smartphone brands.

Meanwhile, Qualcomm remains strong in the premium and super-premium 5G smartphone market, holding a 35% market share, compared to MediaTek’s 14%. Apple and Samsung lead this segment with market shares of 27% and 24%, respectively.

Pathak added that Qualcomm is working to regain ground in the budget smartphone segment with its Snapdragon 4s Gen 2 chip, aiming to power 5G smartphones priced below ₹10,000, and has secured partnerships with brands like Motorola, Vivo, and iQOO.