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In the fiercely competitive mobile phone processor market, MediaTek has long been a key player. Over the past few years, as several domestic smartphone manufacturers gained momentum, MediaTek's market share has steadily grown, eventually positioning it as the second-largest chipmaker in the Android ecosystem. This rise was driven by both strong partnerships and the company’s ability to deliver cost-effective yet reliable performance.
Looking back, MediaTek made a bold move by launching its new Helio brand with high visibility, aiming to target the mid-to-high-end segment. The brand was divided into P-series and X-series chips, signaling a clear intent to shed its traditional image of being a low-cost, entry-level provider. The goal was to reclaim its former glory and compete more effectively against industry giants like Qualcomm. However, despite these efforts, MediaTek struggled to make a lasting impact in the premium market.
One major challenge came from limited production capacity for high-end chips such as the X30, while the planned 10nm P35 was seen as a step back in terms of performance. Meanwhile, competitors like Qualcomm continued to push forward with stronger mid-to-high-end offerings, such as the Snapdragon 630 and 660, which further eroded MediaTek’s position. Even some of MediaTek’s long-time partners, like Meizu, started shifting their focus away from its chips.
Initially, there was hope that MediaTek would take this as a wake-up call and revamp its strategy. But instead, the company recently announced a surprising shift: it will no longer focus on developing flagship chips and will instead concentrate on the mid-range market. This decision came as a blow, especially when Meizu, one of MediaTek’s most loyal supporters, also announced it would switch to Qualcomm next year.
From this perspective, MediaTek’s decision to exit the high-end chip market seems like an admission of defeat. With its development capabilities still lagging behind competitors and the pressure from Qualcomm intensifying, the company’s ambitions in the premium space have hit a roadblock. As Qualcomm continues to dominate the high-end market, it is likely to gain even more profit margins, leaving less room for MediaTek to compete.
By stepping back from the high-end market, MediaTek may find it increasingly difficult to maintain its presence in the low-end segment as well. The company now faces a tough challenge: not only to survive but to find a new path forward in a rapidly evolving industry. Whether it can successfully pivot and regain its footing remains to be seen.
September 08, 2025