In Short:
MediaTek, a Taiwanese semiconductor company, aims to enhance 5G experiences with affordable mobile devices. They hold a 54% share in India’s smartphone chipset market, driving 5G costs down—enabling smartphones under ₹9,000. Collaborating with Lava, MediaTek focuses on budget-friendly options. The company’s efforts are part of a larger trend toward more accessible 5G technology in India, appealing to its young population.
MediaTek’s Commitment to Affordable 5G Solutions
MediaTek, a Taiwanese fabless semiconductor company, is optimistic about enhancing the fifth-generation (5G) experience for consumers. The company plans to continue supporting original equipment manufacturers (OEMs) in launching cost-effective mobile devices.
According to Anku Jain, managing director of MediaTek India, “We always try to have a complete range of products for 5G. We have the entry-level chipset and all the way to the flagship. We are well-known for an affordable range of chipsets. This strategy has worked very well for us, enabling us to democratize 5G usage in India.”
Market Position and Pricing Strategy
MediaTek has captured a significant share of the Indian smartphone chipset market, holding 54% as of Q2 2024, based on a recent report by Counterpoint. The company’s focus on low-cost 5G chipsets and smartphones remains pivotal to its strategy.
The MediaTek Dimensity 700, an 8-core chipset, has been successfully integrated into the homegrown Lava 5G Blaze smartphone, priced at Rs 8,799 ($104). Sunil Raina, managing director of Lava International, noted, “We are the ones to bring prices down from above Rs 20,000 a year ago to under Rs 10,000. Now, sub-Rs 9,000 devices are already available, and we anticipate that within the next year, prices will approach Rs 7,000.”
Demographic Insights and Future Prospects
The dynamics of India’s mobile handset market are promising, aided by the youthful demographic that fosters rapid adoption of new technologies. MediaTek is strategically collaborating with Lava to explore entry-level 5G price points, potentially facilitating low-cost smartphone offerings for additional OEMs.
Some cost-effective smartphones supported by MediaTek include Itel P55, Poco M6, Lava Blaze 2, Realme C63 5G, and iQOO 79 Lite.
Market Trends and Competitive Landscape
Despite the competitive market, a recent report by IDC revealed a 22% year-on-year decline in the average selling price (ASP) of 5G smartphones, bringing it down to $293 (Rs 24,000). Additionally, 27 million 5G smartphones were shipped in Q2 2024, with MediaTek’s market share rising from 49% to 77% in the same period.
In a recent announcement, Qualcomm, a key competitor, disclosed plans to launch a Gigabit 5G smartphone priced at $99, featuring the Snapdragon 4s Gen 2 system-on-chip. Similarly, Xiaomi intends to release an affordable smartphone later this year based on a standalone 2-antenna (SA-2Rx) design.
Jain emphasized MediaTek’s adherence to industry standards, stating, “We are fully compliant with the third generation partnership project (3GPP) standards,” which require four reception antennas for 5G frequency bands.
