MediaTek stands a better chance of generating a substantial rebound in revenues and profits in the third quarter of 2011, company president Hsieh Chin-chiang said at a recent analysts forum.
MediaTek's March revenues are expected to top NT$8 billion, up 70% from February and bring the first-quarter revenues to its target range of NT$19.5-21 billion.
But the outlook for the second quarter is still unclear as the prospects are likely to be affected by three factors – the launch of the SC6610 2.5G single chip solution from China-based Spreadtrum Communications, demand for handset chips from smartphone makers in China, and the impact of the Qaulcomm Reference Design (QRD) initiative on the 3G chipset market in China, according to industry sources.
MediaTek will be forced to slash its quotes for MT6252 solutions should Spreadtrum adopt an aggressive pricing for its SC6610 chipsets, and therefore the pricing competition will undermine MediaTek's the performance in the second quarter, commented the sources.