The Dimensity 9400 and Dimensity 9400+ have taken MediaTek’s competitiveness to new heights in the flagship chipset category, with the Dimensity 9500 continuing the company’s winning streak when it gets announced next month. The Taiwanese fabless semiconductor manufacturer reached a new milestone in 2024 when its shipments grew 60 percent to 18 million units, with the newest estimation stating that the company will now witness a 33 percent bump in that figure for this year.
Overall flagship chipset shipments to reach 24 million units for 2025, but the majority will be made up of the Dimensity 9400 and Dimensity 9400+, not the Dimensity 9500
A report from Counterpoint Research states that MediaTek’s flagship chipset revenue doubled to $2 billion in 2024, and while the newest data did not provide an earnings estimate for 2025, it suggests that thanks to the Dimensity 9500 launch, the total SoC units would reach 24 million units, resulting in a 33 percent increase. MediaTek has secured partnerships with leading Chinese smartphone OEMs to slowly chip away at Qualcomm’s market share, with the latest insights revealing that Vivo will make up the majority of those flagship chipset shipments.
In second place, we have OPPO, followed by Xiaomi’s sub-brand Redmi. What is interesting about the analysis is that MediaTek is largely dependent on China for its flagship SoC shipments, and the Dimensity 9500 will likely not be an exception. Given that the Snapdragon 8 Elite Gen 2 is expected to be pricier than its closest rival in this space, MediaTek has somewhat of an upper hand. China is the largest smartphone market by volume, so it is no surprise that local brands are locked in a cutthroat skirmish to push as many sales in a calendar year as possible.
“China is by far the most important market for the Dimensity 9000 series. The Dimensity 9400’s sales have helped MediaTek capture approximately one-third of the premium SoC market in China. The company is also experiencing growth in India and Southeast Asia. The key reasons for Dimensity’s success include competitive pricing, better battery life and thermals compared to the competition, no support for millimeter wave needed in targeted markets, and strong AI and gaming capabilities.”
Securing Dimensity 9500 orders over the Snapdragon 8 Elite Gen 2 allows MediaTek’s Chinese partners to have some freedom in margins, allowing them to price their flagships competitively and obtain an advantage over their rivals. However, it also puts the company in a tough position because of Huawei’s presence. Additionally, MediaTek’s dependence on China means that in the event of a shipments slump due to a lack of demand, the company’s revenue will witness a drop, but the report does not mention any strategy where the company will heavily diversify to other regions to offset any potential losses.
News Source: Counterpoint Research
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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