Profitability of Taiwanese company MediaTek has come under pressure due to the fall in the value of chips for smartphones. Pressure, according to industry sources, will continue in 2016.
According to Taiwanese trade publication DigiTimes, falling prices for chips for smart phones, especially 3G-chip, negative impact on MediaTek earnings. Currently, the company occupies more than 50% of the segment of 3G-smartphone, but this area no longer provides with profit growth. Sources say that MediaTek has also faced increased competition from their Chinese counterparts, in particular, the manufacturer of chipsets for mobile devices Spreadtrum Communications, actively supported by the Government of China.
MediaTek Total revenues from January to November 2015 amounted to 194.74 billion Taiwan dollars, or $ 5.94 billion, which is 0.6% less than in 2014 year. And annual sales, the company is projected to be 1-2% lower than a year earlier. MediaTek Net income at the end of the fourth quarter of 2015 amount to NT $ 2.54-3.10 per share against 5.09 Taiwan dollars in the third quarter. And net income per share at the end of 2015 will amount to NT $ 16.31-16.87, which is much lower than in 2014 (30.04 Taiwan dollars per share). Related Products :
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