Sales of smartphone solutions from MediaTek are expected to be back to the right track starting March as smartphone vendors in China have begun to renew their orders for dual- and quad-core chips, according to industry sources.
Sales of smartphones in China during the Lunar New Year holidays were better than expected, and a number of hot-selling models offered by Huawei, ZTE, Lenovo and Coolpad are powered by chipset solutions from MediaTek, effectively reducing inventories of chipset solutions, particularly MediaTek's dual-core MT6577 chips, at smartphone vendors, the sources noted.
Demand for TD-SCDMA chips is also strong currently due to subsidiaries offered by China Mobile for the purchase of TD-SCDMA models, the sources added.
MediaTek is likely to ship a total of 35-40 million smartphone solutions in the first quarter of 2013, estimated the sources.
The smartphone solution provider is expected to revise upward its revenue guidance of NT$21.9-24 billion (US$717.15-807.84 million) set for the first quarter of 2013, the sources added.