Shipments of smartphone-use application processors in China are expected to decline 18.2% sequentially in the first quarter of 2018, according to Digitimes Research.
Disappointing smartphone sales during the fourth quarter of 2017 have led to inventory adjustments at chip suppliers in the first quarter, said Digitimes Research. Fewer working days caused by the Lunar New Year holidays also affected shipments of smartphone application processors in China.
Shipments for the first quarter of 2018 will still be 33.6% higher than year-ago levels, when shipments reached their low point on a general slowdown in orders placed by China's smartphone vendors, according to Digitimes Research's quarterly tracker report on China's smartphone AP market.
Qualcomm has expanded its China-based client portfolio to include Xiaomi, Oppo and Vivo. Shipments to Xiaomi will make an important contribution to Qualcomm's smartphone AP sales growth in the first quarter of 2018, Digitimes Research noted.
MediaTek is expected to see its market share rebound starting the first quarter of 2018, as sales of its Helio P series start to gain momentum, Digitimes Research said. Nevertheless, MediaTek will continue to encounter rising competition from Qualcomm, HiSilicon and Spreadtrum.