MediaTek appears to have reached a major business milestone in the third quarter of a year that witnessed the smartphone industry going through some major turmoil. As per data shared by Counterpoint Research, MediaTek eclipsed chief rival Qualcomm to become the world’s largest smartphone chip vendor in Q3 2020. As smartphone sales returned on a growth trajectory, MediaTek’s market share went up courtesy of the increase in demand for devices falling in $100-$250 price bracket in regions such as India and China. 

MediaTek had a market share of 31% in Q3 2020

MediaTek commanded a market share of 31% last quarter, recording a growth of 5% on a YoY basis. Qualcomm’s market share, on the other hand, shrunk from 31% in Q3 2019 to 29% in the same quarter this year. “MediaTek’s strong market share gain in Q3 2020 happened due to three reasons – strong performance in the mid-end smartphone price segment ($100-$250) and emerging markets like LATAM and MEA, the US ban on Huawei and finally wins in leading OEMs like Samsung, Xiaomi and Honor,” noted Research Director Dale Gai. 

READ MORE: MediaTek announces Dimensity 700 5G SoC for affordable phones

Image: Counterpoint Research

5G wave is in favor of Qualcomm right now

The increasing adoption of 5G chipsets proved to be a silver lining for Qualcomm, as it emerged as the largest 5G chipset vendor in Q3 this year. Qualcomm led the 5G chipset market with a share of 39% and is expected to regain the top chipset vendor crown in the next quarter propelled by the sale of 5G smartphones. Counterpoint’s report mentions that out of all smartphones sold in Q3 2020, 17% were 5G enabled. And this growth streak will likely continue in the next quarter as well as one-third of all phones sold in Q4 2020 will be 5G-ready, predicts the research firm. 

READ MORE: MediaTek unveils Dimensity 1000C 5G chip, goes inside T-Mobile LG Velvet

5G phones will aid Qualcomm bounce back in Q4

However, MediaTek will be on Qualcomm’s tail in the 5G smartphone market as well. The company’s Dimensity line of 5G-enabled chipsets will likely dominate the market of low-end and budget 5G smartphones, while Qualcomm is expected to remain the market leader when it comes to upper mid-range and flagship Android smartphones in the upcoming quarters.