MediaTek is expected to see its consolidated revenues slide 10-15% sequentially in the first quarter of 2013 mainly because of inventory adjustments by China-based branded and white-box smartphone makers, according to industry sources.

MediaTek's shipments of 2.5G/EDGE handset solutions, which have been contributing significantly to the vendor's revenue and profit growth, will suffer substantial setbacks in the first quarter, indicated the sources, adding that China-based handset makers now have three-months of inventory of 2.5G solutions.

Sales of 2.5G solutions have been lucrative for MediaTek due to less competition in the segment, and decreasing 2.5G solution shipments would affect MediaTek's overall performance for 2013, commented the sources.

Orders for MediaTek's single- and dual-core 3G handset chips are also declining in the first quarter although shipments of quad-core 3G as well as TD-LTE solutions are relatively stable, added the sources.

MediaTek's launch of quad-core solutions have affected demand for its single- and dual-core 3G chips, said the sources.