Gross profit margin between the market share of the chip factory MediaTek dilemma

MediaTek mobile phone chip factory successfully attacking market share, but also face heavy pressure of the decline in gross margin, how to share the trade-offs between the gross margin and in the city, that is the biggest test of MediaTek, but also many problems facing the chip factory.

MediaTek's X25, X20 and P10 Xi successfully attacking market share in the mobile phone market, China city accounted for more than half of all wisdom, let MediaTek this year to catch a successful mobile phone factory, Chinese wisdom high growth ride, operating performance than expected, the global mobile phone market breakthrough wisdom slowdown dilemma.

Just to improve market share at the same time, MediaTek gross margin is facing heavy pressure decline, the second quarter gross margin has fallen to 35.2%, a record low, compared to the same period last year fell sharply by 10.7 percentage points, MediaTek and expected future gross margin is still pressure, next year will have the opportunity.

Because of Chinese, the government actively fostering the semiconductor industry, chip factory, mobile phone and Spreadtrum positive from the market, the outside world that is the main reason of Spreadtrum MediaTek gross margin fell all the way.

But the observation of MediaTek product structure and product gross margin of the second quarter, LTE accounted for more than 6, the second half of the year 4G shipments proportion will be further into more than 7 level, obvious MediaTek 4G mobile phone chip shipments to grow rapidly, and has become the main mobile phone chip.

In addition, MediaTek 3G product gross margin higher than the average level of 4G company, product gross margin is the lowest, thus it can be seen that the price competition strategy to carve up MediaTek Qualcomm (Qualcomm) of the 4G market, should be the main factors leading to actual MediaTek decline in gross margin.

Compared with MediaTek sacrificing margin attacking market share, many domestic chip factory is China for mainland companies facing competition, the decline in gross margin pressure; although the two are not the same, but MediaTek and other chip factory are also facing domestic gross profit margin and market share difficult trade-offs between rate.

The light emitting diode (LED) display driver IC leading the accumulation of a few years ago that Chinese by mainland companies suffer from intense price competition, general manager Chen Qikai once said to be revealed, some opponents of low order price even more than the accumulation of low cost, and accumulation of abandoned part of the poor quality of the order.

The accumulation of the first quarter of last year due to intense market competition, with the adjustment of the stock portfolio of customers, and as expected, gross margin fell below 3 points, fell to 29.4%, net profit per share of only NT $0.11, a record low of otc.

Fortunately, the completion of the accumulation of small screen display product layout, the smooth ride on the small screen display market rapid growth period, operating in the second quarter of last year, that is a rapid improvement.

The accumulation of the second quarter of this year attributable to the parent company net profit of 59 million 470 thousand yuan, a high level of the 6 quarter, the first half net profit attributable to parent company of 104 million yuan (NT below), has reached the last full year profit of more than 9 levels, net profit per share of 3.21 yuan.

With a firm pace, in the small pitch screen market improved, and plans to return to the basic models of the accumulation of product market share, this year the overall product share will rise to 55% level firms.

Accumulation said that there will always be competition in the market, enterprises can not be afraid of competition, should continue to seek a balance between gross profit margin and market share.

The micro controller (MCU) factory Sheng group Resource Management Center Deputy General Manager Li Peiying also said that in the face of competition from the mainland, Taiwan manufacturers should not blindly stick to the gross profit margin, and let out of the market, manufacturers sometimes sacrifice gross margin, stick to the market in a certain profit basis, can not let the opponent, easily obtained.

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