According to Canalys, the third quarter of 2024 brought significant shifts in the global smartphone chipset market. For instance, Mediatek, despite leading in shipments with 119 million units, fell behind Apple (AAPL, Financial) in terms of revenue. The Taiwanese chipset maker recorded $26 billion in revenues, reflecting a year-over-year decline. This suggests that MediaTek may be prioritizing volume over margins, catering to high-demand, low-cost smartphone manufacturers.
In contrast, Apple, which only shipped 54 million chipsets, saw an 11% revenue increase, making it the top vendor in terms of revenue. This is due to the high profit per device from its proprietary chips used exclusively in iPhones, contributing to its superior margins and market position.
However, Huawei's most remarkable growth has come from this company. Its HiSilicon unit saw a staggering 211% year-over-year increase, though from a smaller base. Huawei shipped just 8 million chipsets, generating $7 billion in sales. This success is notable, given the company's ability to thrive despite significant trade restrictions. Huawei's strong position in the Chinese market and its strategic agility were key to navigating these challenges and driving its growth in the chipset sector.
