The ratio Kirin-series application processors, developed by HiSilicon Technologies, used in Huawei's mid-range and high-end smartphones has continued to increase, which is unfavorable to MediaTek, according to industry sources.

Although Huawei's current purchases of smartphone-use APs from MediaTek are still larger than those from HiSilicon, most MediaTek APs have been used in Huawei's entry-level to mid-range models. This trend could give consumers the impression that the performance of HiSilicon's chips is higher than that of MediaTek's, commented the sources.

Huawei's increasing use of HiSilicon chips has helped ramp up production capability at the chipmaker, said sources.

Huawei shipped 75.6 million smartphones in the first three quarters of 2015, taking the third position in the global smartphone vendor rankings. During the nine-month period, Huawei's smartphone shipments to the Middle East and Africa grew by 75% on year, Europe 98% and China 81%, the sources noted.

The ratio of Huawei's smartphones priced over US$300 climbed to 33% in the first three quarters of 2015 compared to 25% a year earlier, the sources added.

It is believed that Huawei will continue to ramp up the ratio of Qualcomm and HiSilicon CPUs in its mid-range and high-end smartphones, while using more MediaTek's chips in its entry-level Y-series models, indicated the sources.