Rising demand for MediaTek's MT6252 solution, positioned as an ultra low cost single chip solution for multimedia-rich mobile phones, is expected to buoy the IC designer's sales performance in the second quarter of 2011, according to market sources. The sources observed many China-based handset companies such as Gionee Communications Equipment and Konka plan to use the chip for their new products ready for launch in May.
Other companies that will adopt MediaTek's MT6252 for their upcoming mobile phones also include Leatek Technologies International, Shanghai Ragentek Communication Technology and Shenzhen Ginwave Technologies. Ginwave in early April announced it will start mass producing a new device utilizing the solution in May, targeting emerging markets.
MediaTek has estimated revenues at NT$20.9-22.3 billion (US$727.82-776.57 million) in the second quarter of 2011, up 5-12% sequentially. The sources speculate the company could outperform the guidance.
MediaTek president Hsieh Ching-chiang, speaking at a recent company investors meeting, said that shipments of the company's MT6252 had so far reached two million units. The solution would account for 30% of MediaTek's total handset solution shipments in the third quarter, and further grow to 40% in the fourth, Hsieh indicated.
Before Hsieh's remarks, previous reports cited industry sources as saying MediaTek saw a ramp-up in orders for its MT6252 solution, and visibility of orders for the chip extended to the third quarter. Rising demand for MediaTek's MT6252 has therefore pressured competitor Spreadtrum Communications to look for ways to maintain its China market share.