EqualOcean news, MediaTek announced on August 10 this year, July revenue report, data show that the July consolidated revenue of TWD 31.763 billion, a monthly decline of 16.8%, an annual decline of 22.3%, the cumulative total of the first seven months of consolidated revenue of TWD 225.55 billion, a yearly decline of 33.5%.
MediaTek announced its second-quarter financial results at the end of July, with second-quarter revenue of TWD 98.135 billion and net profit of TWD 16.019 billion.
Mr. Rick Tsai, Vice Chairman and CEO of MediaTek, said that the third quarter benefited from improved demand for smartphones, networking chips, and power management chips, which can offset the decline in smart TVs and other consumer electronics products, and expects Q3 revenue to reach TWD 1,021~108.9 billion, a quarterly increase of 4~11%. The gross profit margin of about 45.5 ~ 48.5% and the operating expense ratio is estimated at 30 ~ 34%.
Rick Tsai pointed out that the inventory levels of major end customers and channels have gradually decreased to normal levels, and customer demand continues to stabilize, but customers are still managing their inventories cautiously. In the short term, business is expected to improve in the second half of the year gradually.
Regarding the smartphone market in mainland China, Rick Tsai said that the decline in smartphone sales since 2023 is mainly due to the lengthening of the consumer replacement cycle, which has reached nearly 24 months. Regarding the development of the AI field, MediaTek has been working on integrating AI computing APUs into mobile SoCs, which can realize generative AI on mobile phones, such as ChatGPT-like functions, with powerful performance. In addition, MediaTek is working closely with customers to explore the direction of AI applications, and MediaTek's chips will also support large-scale AI models in the future. In terms of end-market demand, the recovery of the smartphone market is viewed cautiously but is not expected to decline in the future.