Shipments of smartphone applications processors in China are expected to drop by 1.5% sequentially to 94.95 million units in the fourth quarter of 2013, according to Digitimes Research.
Digitimes Research attributed the on-quarter shipment decrease mainly to MediaTek's weaker performance compared to the previous two quarters.
Taiwan-based MediaTek, which has the largest market share for smartphone processors in China, will see its shipments decline 16% sequentially in the fourth quarter due to rising competition from rivals in the TD-SCDMA and EDGE chip market segments, Digitimes Research said.
In fact, MediaTek has switched its focus to high-margin product lines targeted at mid-range and high-end smartphones in the fourth quarter of 2013. Such move will have an immediate impact on its shipment performance in the fourth quarter, Digitimes Research indicated.
Meanwhile, MediaTek's fourth-quarter shipments are also being affected by seasonal inventory adjustments at some of its clients, Digitimes Research observed.
Qualcomm's smartphone apps processor shipments to China are forecast to increase 4.8% sequentially in the fourth quarter, thanks to growth in shipments of its mid-range and high-end offerings, Digitimes Research said.