MediaTek has reported revenue and profit decreases for the second quarter of 2015, citing decelerating handset demand and intensifying price competition among chip providers.

MediaTek posted consolidated revenues of NT$47.04 billion (US$1.49 billion) in the second quarter of 2015, down 1% sequentially and 13.1% on year.

MediaTek's gross margin also fell to 45.9% in the second quarter from 47.3% in the prior quarter and 49.6% a year earlier. The sequential and on-year drops were mainly due to "smartphone product transition and market competition," the company said.

During the quarter, increasing R&D talents and technology investments led to higher operating expenses, MediaTek disclosed. Operating expenses came to NT$14.73 billion, or 31.3% of company revenues, in the second quarter of 2015.

MediaTek generated net profits of NT$6.38 billion in the second quarter of 2015, hitting the lowest level in nine quarters. EPS for the quarter arrived at NT$4.06 compared with NT$4.62 in the first quarter and NT$8.03 in second-quarter 2014.