MediaTek is expected to see its shipments of smartphone solutions decline 20% sequentially in the first quarter of 2017, according to a Chinese-language Commercial Times report.

Factors including weakening demand for entry-level models in India and decreasing chipset shipments to Oppo will affect MediaTek's shipments in the first quarter, said the paper, citing Laura Chen, an analyst at BNP Paribas Asia.

Additionally, it will also be difficult for MediaTek to ramp up its gross margin in 2017 due to keen price competition, Chen said.

Recent market response to MediaTek's 10nm products, including its Helio X30 and Helio P35 CPUs, has not been enthusiastic due to their high production costs, as well as high selling prices, Chen was quoted as saying.

BNP Paribas expects MediaTek to post an EPS of NT$16.43 (US$0.52) in 2017 and NT$17.39 in 2018, according to the report.