Taiwanese company MediaTek has lowered its forecast for the supply of smartphones with support for fifth generation (5G) networks in 2020. If global deliveries of more than 200 million 5G smartphones were initially predicted, now MediaTek believes that 170-200 million devices of this type will be sold by the end of the year. The company was forced to change its estimates due to the coronavirus outbreak in China, which has brought production to a halt for many tech companies.
According to the new forecast, 100-120 million 5G smartphones will be sold in the Chinese market, which will have a global share of about 60%. At a recent meeting with investors, MediaTek CEO Rick Tsai expressed confidence that the company will be able to offset the effects of the ongoing crisis in China due to the high competitiveness of its own chips for 5G, artificial intelligence and Artificial Intelligence of Things (AIoT) technology, combining the capabilities of AI systems with the Internet of things. He also noted that the company's new product lines creating 5G chips, application-specific integrated circuits (ASICs), and automotive solutions will provide more than 15% of MediaTek's revenue in 2020, well above the previously predicted 10%.
In his speech, the head of MediaTek said that in 2019 the company managed to achieve a significant increase in revenue, gross and net profit, therefore, the manufacturer faces aggressive tasks for 2020, the successful implementation of which will largely depend on the supply of products for 5G devices, Wi-Fi 6, ASIC, automotive chips and AI systems. In particular, Tsai stressed the high competitiveness of the company's recently launched Dimensity SoCs, saying that Chinese smartphone manufacturers are actively developing new models of devices based on these chips.
Source: 3dnews.ru