MediaTek reported subdued sales growth during the typically strong peak season. The company is now relying on the Dimensity 9400 to boost its annual revenue.
MediaTek has announced its latest revenue figures for August, totaling NT$41.528 billion (US$1.3 billion), a month-on-month decrease of 8.95% and a year-on-year decrease of 1.72%. However, the cumulative revenue for the first eight months of 2024 still showed a 29.89% growth compared to the same period in 2023.
With an accumulated revenue of NT$87.138 billion for the third quarter, MediaTek is on track to meet its target unless there are unexpected changes in September's overall shipments. The single-month revenue figures for July and August suggest a high probability of achieving this goal. Whether it can reach the higher end of its forecast will largely depend on the shipment momentum of the Dimensity 9400 in September.
MediaTek had previously provided a relatively conservative outlook for the third quarter, aligning with the industry's overall expectation of a weaker-than-usual peak season. However, the company still has the Dimensity 9400 to drive revenue growth in the fourth quarter.
Based on MediaTek's earlier projections, the Dimensity 9400 is expected to gain market share in the flagship smartphone segment in 2024. The number of initial adoption models has been confirmed to be higher than the previous generation, and customer feedback has been positive so far. Therefore, the fourth quarter's revenue growth is expected to be more significant.
As for other smart applications and communication chips, demand in the second half of 2024 appears to be relatively flat, offering limited growth contributions. While MediaTek has invested heavily in automotive electronics and cloud ASICs, these segments still account for a relatively small portion of the company's revenue.
Even with ongoing progress in cloud ASICs, their contribution to growth will be limited. Looking ahead to the second half of 2024, the Dimensity 9400 is likely to shoulder the primary responsibility for driving growth.
Source: MediaTek, September 2024
