MediaTek has disclosed its financial results for the fourth quarter of 2023, revealing a robust performance with a 17.7% quarterly and 19.7% annual increase in revenue, amounting to 129.56 billion yuan. The company’s after-tax net profit surged by 38.5% quarterly and 38.9% annually to 25.71 billion yuan, with a net profit after tax per share of 16.15 yuan. The annual revenue reached 433.44 billion yuan, showcasing significant growth with a net profit after tax per share of 48.51 yuan.
This financial upswing comes as MediaTek capitalizes on the recovery of the smartphone market and the successful launch of its Dimensity 9300 processor. Counterpoint Research highlights MediaTek’s strategic positioning in the fourth quarter of 2023, noting its effective management of inventory levels and stabilization of customer and channel inventories. The research firm credits MediaTek with adapting to the shifting economic conditions in key markets like the United States and China, which have seen a slight uptick in demand.
Looking ahead to the first quarter of 2024, MediaTek anticipates revenue growth compared to the same period last year, reflecting an adjustment to normal inventory levels. Counterpoint Research’s Shivani Parashar predicts a resurgence in Android device shipments in 2024, which is expected to alleviate the inventory excess experienced in 2023. This forecast suggests a positive outlook for MediaTek as the smartphone market, particularly in the low-end and mid-end segments, rebounds.
Moreover, competition in the entry-level 5G market is expected to intensify between Qualcomm and Unisoc, with MediaTek’s 5G penetration rate projected to surpass other brands. Counterpoint also foresees continued revenue growth for MediaTek in the flagship smartphone sector in 2024, indicating a promising year ahead for the semiconductor giant amidst challenges in the automotive and flagship smartphone sectors.
