The growing posture of Qualcomm’s chipsets continues to be at the detriment of rival chipmakers specially Taiwanese fabless cpu manufacturer MediaTek. It has been disclosed that the manufacturer expects to article a revenue decline of 12-20% sequentially in the first quarter of 2019, and flat or slight revenue growth in all of the year.
MediaTek noted consolidated revenues declined 9.2% sequentially to NT$60.89 billion (US$1.98 billion) in the fourth quarter of 2018, thanks mainly to a seasonal slowdown in demand for customer electronics. Gross margin grew 0.4pp on quarter to 38.9%, due to a favourable gadget mix. Moreover, the Taiwanese chipmaker generated net income of NT$3.75 billion in the fourth quarter, down 45.4% sequentially, with EPS expected to NT$2.42. MediaTek’s consolidated revenues for all of 2018 slipped 0.1% to NT$238.06 billion when gross margin climbed 2.9pp on year to 38.5%. The company posted net sales of NT$20.78 billion in 2018, down 13.7%, with EPS reaching NT$13.26.
As stated by to MediaTek’s CEO Rick Tsai, the manufacturer is informed of decelerating smartphone growth. He Additionally added that the global cameraphone market growth will remain sluggish until 5G-compatible gadgets become commercially out there. MediaTek is stepping up the development of its 5G-enabled solutions, and expects to unveield its 5G SoC series at the close of 2019 following the release of its 5G modem cpu in the initial half of the year, Tsai indicated. The manufacturer will Furthermore roll out its new cpu solutions for the next-generation Wi-Fi technology – Wi-Fi 6 (802.11ax), and automotive electronics products in 2019, Tsai In addition disclosed. The manufacturer will continue to diversify its offerings for further gadget mix improvement, Tsai added. The CEO announced that improvement in the company’s device mix is bearing fruit. Thus, the company expects to article a gross margin of 38-41% in the first quarter of 2019 despite an anticipated income fall of up to 20%.