Processors and smartphones market, only destiny: the impact of the coronavirus on MediaTek

The smartphone sector It has been in crisis for some time now: from the stagnation foreseen by the analyzes published in 2019, it collapsed until the February data collapse, the first month in which the pressures on the coronavirus economy began to feel strong. The following weeks did nothing but consolidate the negative trend underway, with forecasts that concern both the European and the global markets.

And the trend on the market of processor manufacturers are themselves a valid indicator that allows us to interpret the direction in which the entire sector is moving. If Qualcomm had provided data in the past few days, it is now MediaTek to photograph the state of the industry through the publication of the April tax results. In the past month the revenue dropped nearly 5 percentage points compared to March, a value that doubles if the comparison with the previous year is made.

This is a marked downsizing that goes against the trend that had been achieved overall in the first four months of 2020: in fact, between January and the end of last month, the revenues are in fact grown by 10%, demonstrating how the year just started had good conditions among new solutions in the fields of new generation processors and networks. The pandemic has changed the cards on the table, forcing companies to review their strategies which, due to production freeze, logistics stop and demand collapse, will inevitably have to try to get an entire sector moving again.

MediaTek sees positive for the immediate future: in fact, a recovery is expected in June with revenue growing again. This will obviously depend on the trend of the pandemic and the hoped for recovery of all economic activities. The Taiwanese company, meanwhile, continues to churn out new solutions, six since the beginning of the year: