LONDON: MediaTek expects its 2016 revenues to increase 25% on year, an upward revision from the about 10% growth estimated previously. Smartphone shipments worldwide will increase 7-9% in 2016, with shipments from China-based players set to enjoy much higher growth, said MediaTek president CJ Hsieh at an August 3 investors meeting. MediaTek’s revenue growth for 2016 will be driven by robust shipments from its China-based handset clients, Hsieh indicated. MediaTek continues to expect gross margin to be in the range of 35% to 38% for 2016, Hsieh added.
MediaTek saw its revenues climb to a record high of NT$72.53 billion in the second quarter, but gross margin for the quarter hit a record low of 35.2%. MediaTek expects to post NT$78.3-84 billion in third-quarter revenues, 8-16% higher than the prior quarter’s levels. During the quarter, MediaTek will ship a total of 145-155 million handset- and tablet-use chips, Hsieh noted.
MediaTek is looking to grow its Helio line of mobile chips for mid-range and high-end devices as a proportion of the company’s total shipments to more than 20% in the third quarter, said Hsieh, adding that the company will see its overall product ASPs rise 5-10% sequentially during the quarter. Despite the anticipated revenue increase for the third quarter, MediaTek’s gross margin will remain under pressure. The company expects to generate a gross margin of 33.5-36.5%.
