MediaTek and Qualcomm are in the process of raising the prices for some of its smartphone chips, GizmoChina reported.
MediaTek has increased the price of 4G chips for smartphones since the primary focus of chipmakers is the 5G smartphone market. 4G chips now hold a smaller stake in the overall market but the demand for 4G smartphones is still high.
Taiwan-based MediaTek has increased prices by 15 percent for 4G chips and 5 percent for 5G chips. The primary reason for the increase in price is due to the increased cost of production from TSMC’s foundry.
Apart from MediaTek, Qualcomm is also expected to raise the prices of its chipsets.
MediaTek has managed to retain its top spot with 38 percent market share in the global application processor (AP) market for smartphones in Q2.
Market research firm CounterPoint said MediaTek leads the AP market in the July-September quarter of 2020, with its Dimensity 700 series dominating the 5G market. On the other hand, the Helio P35 and Helio G80 were quite popular in the 4G LTE segment.
US-based Qualcomm has a market share of 32 percent. The company saw a notable market share due to its processor’s popularity in the high end 5G market.