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MediaTek surpassed Qualcomm as the top smartphone SoC vendor in Q3 2020 for the first time.

What you need to know

• MediaTek reportedly held 43% of the smartphone SoC market in Q2 2021.
• Qualcomm's market share stood at 24%.
• The global smartphone AP (Application Processor) grew 31% YoY in the April to June quarter.

MediaTek continued to lead the global smartphone SoC market in the second quarter of 2021, according to the latest research from Counterpoint.

Data from the market research firm reveals the Taiwanese chipmaker held a 43% share of the market in the April to June quarter, thanks to a growth in shipments of low-end 5G chips. Unlike Qualcomm, MediaTek didn't have any major supply constraints either.

Qualcomm's market share stood at just 24%, mainly due to "component supply constraint and lower yields at the foundry." During the same period last year, Qualcomm led the market with a market share of 28%. MediaTek was just behind Qualcomm with a 26% share. Since the company has realigned its component sourcing strategy, its chip shipments are expected to increase significantly in the coming quarters.

While it couldn't compete with MediaTek in the low-end segment, Qualcomm dominated 5G baseband modem shipments with a 55% share of the global market. However, it remains to be seen if Qualcomm can reclaim the title of the world's largest smartphone SoC vendor from MediaTek.

Although there's no doubt that Qualcomm has a clear advantage when it comes to flagship mobile chipsets, MediaTek's low-end and mid-range chips are much more competitive.

The Dimensity 1200 chipset, which was announced as a Snapdragon 888 challenger earlier this year, has only been used in premium mid-range and value flagship phones by manufacturers.

Qualcomm's flagship chipset, on the other hand, powers pretty much all the best Android phones released this year — including the North American variants of Samsung's Galaxy S21 series.

The global smartphone SoC market registered an impressive 31% YoY growth in Q2 2021, thanks to the growing popularity of 5G phones. Counterpoint says 5G smartphone shipments grew almost four times compared to Q2 2020.