MediaTek’s Q1 2019 income expected to fall by up to 20%
MediaTek’s Q1 2019 income expected to fall by up to 20%

MediaTek’s Q1 2019 income expected to fall by up to 20%

MediaTek’s Q1 2019 income expected to fall by up to 20%

The growing posture of Qualcomm’s chipsets continues to be at the detriment of rival chipmakers extremly Taiwanese fabless cpu company MediaTek. It has been disclosed that the manufacturer expects to post a income decline of 12-20% sequentially in the first quarter of 2019, and flat or slight income growth in all of the year.

MediaTek noted consolidated revenues declined 9.2% sequentially to NT$60.89 billion (US$1.98 billion) in the fourth quarter of 2018, because of mainly to a seasonal slowdown in demand for consumer electronics. Gross margin grew 0.4pp on quarter to 38.9%, thanks to a favourable product mix. Also, the Taiwanese chipmaker generated net income of NT$3.75 billion in the fourth quarter, down 45.4% sequentially, with EPS coming to NT$2.42. MediaTek’s consolidated revenues for all of 2018 slipped 0.1% to NT$238.06 billion whenever gross margin climbed 2.9pp on year to 38.5%. The manufacturer posted net income of NT$20.78 billion in 2018, down 13.7%, with EPS reaching NT$13.26.

As claimed by to MediaTek’s CEO Rick Tsai, the manufacturer is aware of decelerating cameraphone growth. He Additionally added that the global smartphone market growth will remain slow until 5G-compatible devices become commercially out there. MediaTek is stepping up the development of its 5G-enabled solutions, and expects to present its 5G SoC series at the end of 2019 following the release of its 5G modem cpu in the first half of the year, Tsai show. The company will Furthermore roll out its new cpu solutions for the next-generation Wi-Fi tech – Wi-Fi 6 (802.11ax), and automotive electronics products in 2019, Tsai Furthermore disclosed. The manufacturer will continue to diversify its offerings for further gadget mix improvement, Tsai added. The CEO noted that improvement in the company’s device mix is bearing fruit. Thus, the manufacturer expects to article a gross margin of 38-41% in the first quarter of 2019 despite an anticipated revenue fall of up to 20%.

Source, via

About Ivan Todorov

Check Also

MediaTek MT6893 6nm reveals in Geekbench

MediaTek MT6893 6nm reveals in Geekbench

Noted this week, MediaTek teased the arrival of a new 6nm chipset. The Taiwan-based company …