Amid global chip shortages, smartphone makers are diversifying risks by choosing multiple chip makers to meet demand, according to a new report.
Smartphone models launched in 2021 reflect the increasing preference of original equipment manufacturers (OEMs) to choose multiple chipset suppliers for their smartphone portfolios.
According to market research firm Tekark, MediaTek led against Qualcomm with 81 smartphone models launched on its chipset, with 51 launched in India.
Realme, Samsung and Motorola had three chipset suppliers for smartphones launched in 2021.
“The chipset landscape is changing rapidly as we see OEMs now becoming a competition for fabless chipset makers,” said Manish Rawat, senior analyst at Tekark.
“In 2021, there was no major impact on the market, but in 2022 and beyond, OEMs are likely to strengthen their own chipset roadmaps, thereby reducing reliance on SoC manufacturers,” he said.
While this gives OEMs better control over creating differentiation at the core of the product, opportunities are likely to be squeezed for chipset makers, especially in premium and flagship products, as these OEMs are offering them with proprietary chipsets, reports stated in.
After Apple, Samsung, Huawei, Google and OPPO have already unveiled their chipsets.
Vivo also announced its first ISP (Image Signal Processor) last year.
Among fabless chipset makers, this is likely to have a big impact on Qualcomm as its chipsets are used by major OEMs for their premium and flagship models.
“At the same time, MediaTek will also see some impact on its Dimension family, which has started entering the premium segment of smartphones,” the report said.
As 5G smartphone launches are taking place across multiple levels of the market, it will be a close competition between Qualcomm and MediaTek to steal the maximum 5G smartphone deals in 2022.