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Mediatek outlook

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Transcript

  • 1. MediaTek (2454TT): Positive Outlook
  • 2. Key ideas• Smartphone market growth potential• Low cost disruptive innovation – Protection from value network difference – Tech lead in the sustaining innovation – Opportunities in low-end tablet and its unrealized market potential
  • 3. Worldwide Smartphone Shipments(Y)1600 180.00% 160.00%1400 140.00%1200 120.00%1000millions 100.00% 800 80.00% 600 60.00% 400 40.00% 200 20.00% 0 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Smartphones YoY Growth
  • 4. Worldwide Smartphone Shipment(Q)450400350300millions25020015010050 0 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Shipment
  • 5. Smartphone shipments in China45000040000035000030000025000020000015000010000050000 0 2011 2012 2013 2014 2015 2016 White Box Shipment High-end
  • 6. White Box Shipment in China900008000070000600005000040000300002000010000 0 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 White Box Shipment
  • 7. MediaTek’s Competitive Advantages• To Qualcomm – Low cost disruptive innovation protected by value network difference (process and value)• To Spreadtrum and others – Sustaining innovation supported by technology lead (R&D)• Price/Performance is clients’ main focus – Not commoditized yet – Space for Differentiation
  • 8. • Downside pressure• Difference Value Network Gross Margin 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 3Q10 3Q11 3Q12 Spreadtrum Mediatek Qualcomm
  • 9. MediaTek’s Opportunities -beyond smartphone• The quad-core MT 6589 not only targets higher level white box smartphones but also entry/medium level tablets.• Chinese tablets shipments now only accounts for 10% of global market share. (compared to smartphone’s 23-27% market share)• Margin sustaining until mobile devies commoditization
  • 10. Performance Demand by Product High Tablet MT 6589 High SmartphonePerformance MT 6583 Demand Low Tablet Low Smartphone Time
  • 11. MediaTek’s Risks• Lost momentum in smartphone market growth• Lost white box momentum due purchasing power growth• Disruption disrupted – Strategies to mitigate value network difference – Breakthrough sustaining innovation• To quick to Commoditization – Price competition• Pending merger (more negative on MStar)
  • 12. Capital market check