China smartphone AP shipments, 3Q 2024

DIGITIMES Research estimates that shipments of application processors (APs) for Chinese smartphones increased by 9.4% quarter-on-quarter in the third quarter of 2024, primarily driven by smartphone brands stocking up inventory in advance for the peak season in the second half of the year. Additionally, the launches of new flagship APs from MediaTek and Qualcomm in the fourth quarter have also prompted smartphone brands to strengthen their inventory preparations.

Looking ahead to the fourth quarter, AP shipments for Chinese smartphones are expected to decrease by 7.7% quarter-on-quarter due to overseas smartphone markets returning to their traditional off-season in the first quarter of 2025. China's consumer spending enthusiasm will remain lackluster in the first quarter of 2025 despite the Lunar New Year holidays. As a result, smartphone brands are adopting a conservative approach to stocking APs.

In the fourth quarter of 2024, Hisilicon will be the only company among the four major AP providers to experience positive market share growth, reaching 7.6%. The growth will be driven by the launch of Huawei's Mate 70 series smartphones, which are powered by Hisilicon's new 5G AP, in that quarter. The performance of the AP as well as the manufacturing process it used are expected to be the spotlights of the market observers after its release.