The growing posture of Qualcomm’s chipsets continues to be at the detriment of rival chipmakers extra Taiwanese fabless cpu manufacturer MediaTek. It has been disclosed that the manufacturer expects to post a income decline of 12-20% sequentially in the initial quarter of 2019, and flat or slight income growth in all of the year.
MediaTek announced consolidated revenues declined 9.2% sequentially to NT$60.89 billion (US$1.98 billion) in the fourth quarter of 2018, due mainly to a seasonal slowdown in demand for customer electronics. Gross margin grew 0.4pp on quarter to 38.9%, thanks to a favourable product mix. Furthermore, 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 after gross margin climbed 2.9pp on year to 38.5%. The company posted net income of NT$20.78 billion in 2018, down 13.7%, with EPS reaching NT$13.26.
As claimed by to MediaTek’s CEO Rick Tsai, the manufacturer is aware of decelerating phone growth. He moreover added that the global cameraphone market growth will remain slow until 5G-compatible gadgets become commercially out there. MediaTek is stepping up the development of its 5G-enabled solutions, and expects to introduce its 5G SoC series at the close of 2019 following the launch of its 5G modem chip in the initial half of the year, Tsai specify. The manufacturer will Additionally roll out its new cpu solutions for the next-generation Wi-Fi tech – Wi-Fi 6 (802.11ax), and automotive electronics products in 2019, Tsai also disclosed. The company will continue to diversify its offerings for further device mix improvement, Tsai added. The CEO reported 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 regardless of an anticipated income drop of up to 20%.