MediaTek Dimensity 9500 Projected to Boost Flagship Chipset Shipments by 33% in 2025, With China as Key Market

The MediaTek Dimensity 9400 and Dimensity 9400+ have significantly enhanced the company’s standing in the premium chipset market, with expectations mounting for the upcoming Dimensity 9500, set to be unveiled next month. The Taiwanese semiconductor giant achieved a major milestone in 2024, reporting a 60% increase in shipments, totaling 18 million units. Projections indicate a formidable 33% rise in shipments for the current year.

Flagship Chipset Shipments Projected to Reach 24 Million Units by 2025

According to a report by Counterpoint Research, MediaTek’s flagship chipset revenue surged to $2 billion in 2024. Though forecasts for 2025 remain uncertain following the Dimensity 9500’s launch, it is anticipated that total System-on-Chip (SoC) units will soar to 24 million, reflecting a notable 33% growth. MediaTek has been establishing alliances with major Chinese smartphone manufacturers to gradually erode Qualcomm’s market dominance, with strong indications that Vivo will lead the charge in flagship chipset shipments.

Following Vivo, OPPO and Xiaomi’s sub-brand Redmi are expected to contribute significantly to these figures. The analysis highlights MediaTek’s reliance on the Chinese market for flagship SoC shipments, a trend likely to continue with the arrival of the Dimensity 9500. Given that the Snapdragon 8 Elite Gen 2 is projected to command a higher price point, MediaTek is positioned favorably in this competitive landscape. As the largest smartphone market in terms of volume, China remains a battleground where local brands are fiercely competing to maximize their annual sales.

MediaTek's Dimensity 9500 to boost the company's flagship chipset shipments for 2025

“China is by far the most important market for the Dimensity 9000 series. The Dimensity 9400’s sales have helped MediaTek capture approximately one-third of the premium SoC market in China. The company is also experiencing growth in India and Southeast Asia. The key reasons for Dimensity’s success include competitive pricing, better battery life and thermals compared to the competition, no support for millimeter wave needed in targeted markets, and strong AI and gaming capabilities.”

By securing orders for the Dimensity 9500 over the Snapdragon 8 Elite Gen 2, MediaTek’s Chinese partners can enjoy greater flexibility with their pricing strategies, allowing them to offer competitive flagship models while gaining a notable edge over their competitors. However, this reliance on the Chinese market presents its own challenges, particularly due to Huawei’s strong presence in the industry. Should a downturn in shipments occur, attributed to declining demand, MediaTek’s revenue could suffer as well. Currently, there appears to be no outlined strategy aimed at diversifying into other markets to mitigate potential revenue decreases.

For further insights, visit the source: Counterpoint Research.

Additional information and images can be found at: WCCFTech.