August 10, 2013 Taipei, Taiwan—Daiwa Securities have mentioned that MediaTek Inc. a Taiwan-based integrated circuit designer is foreseen to seize over 30 percent share of China’s tablet chip market (everbuying.com)in the coming year, this is in line with the increasing demand of tablet computers there at present.
In addition, Daiwa Securities added that tablet pc shipments to China last year are doubtlessly to exhibit a 100 percent yearly increase to 120 million units and maximize more by 42 percent year on year to 170 million units next year.
This predicts that MediaTek’s share of the China market shall augment from an approximated 18 percent this present year to about 30 to 35 percent in the coming year.
Additionally, dual core tablet chips shall develop into widespread supply in China, reckoning for 50 percent of the total sales for this year, on the other hand, quad core chips are anticipated to take 30 percent as reported by Daiwa Securities.
The brokerage has stated that MediaTek is presumably to ship 21.60 million tablet chips this year; this is greater than the firm’s prediction of 10 million to 15 million units.
In the beginning of May, the IC designer increased its 2013 tablet ship shipment prediction bounded by 5 million and 10 million units and is likely to increase it again.
According to Daiwa Securities, MediaTek’s 2014 tablet chip shipments are expected to beat 60 million units.
MediaTek was set to issue its second quarter outcomes and provided its third quarter sales guidance last August 02 as an investor conference.
It was in early July when MediaTek shared the news about the consolidated sales for the second quarter, an increase of 38.8 percent from the first quarter and surpassing its estimate between NT$30.0 billion and 31.6 billion.
Market analysts shared that the firm’s considerable growth in sales highly manifested the solid demand for smartphone chips in China, however, the increasing tablet chip shipments also aided in the significant increase of sales.
Moreover, they also stated that MediaTek is contemplated to post over NT$4 in earnings for every share for the second quarter, in comparison with NT$2.79 in the first quarter.
It is quite essential to note that the shares of MediaTek closed up at 3.93 percent at NT$343.50 on the Taiwan Stock Exchange last July 23 after Barclays Capital released an “overweight” recommendation on the stock.