MediaTek announced its July results yesterday (10) afternoon, with consolidated revenue of NT$40.89 billion, the best in the calendar year, but down 19.8% sequentially and down more than NT$10 billion from June, with single-month results falling for four consecutive months and dipping to a near five-month low, reflecting the weakness of the Android smartphone market at this stage, with brand manufacturers actively clearing their inventories and slowing down their purchases. This reflects the weakness of the Android smartphone market at this stage, with brand manufacturers actively clearing their inventories and slowing down their chip purchases.
MediaTek is expected to report consolidated revenue of NT$141.7 billion to NT$154.2 billion this quarter, down 1% to 9% sequentially, but up 8% to 18% year-on-year. If we project the results in July, MediaTek's average consolidated revenue in August and September must stand above NT$50 billion in order to reach the low target of this quarter's financial forecast.
MediaTek's performance in March this year rushed to a new high of 59.18 billion yuan, after a single month of consolidated revenue began to decline, June still stood steady above 50 billion yuan to 51.03 billion yuan, but the annual growth rate of consolidated revenue in June has converged to within 10% only 6.85%, July revenue continued to be revised, the annual growth rate again converged to 1.31%, almost the same as the same period last year, and the annual growth rate of revenue at the beginning of the year is often more than 20% very different.
Industry analysis that the global inflationary pressure, Android mobile phone market demand shrinking, especially the mainland millet, OPPO, vivo and other brand factory inventory climbing high, the chip demand is significantly reduced, the relevant brands are MediaTek's main customers, directly affecting MediaTek shipments.
MediaTek's consolidated revenue for the first seven months was NT$339.331 billion, an annual increase of 23.8%. According to past operating trajectories, the third quarter is usually the peak of MediaTek's annual operations, with only a few years peaking in the fourth quarter, and the last time the company's third quarter performance was worse than the second quarter was in 2010. In the current market tide of inventory adjustment, if MediaTek's revenue this quarter shows a quarterly decline, it means that its single-quarter revenue high point this year may be in the second quarter.
MediaTek's Chief Executive Officer, Richard Tsai, previously mentioned in a press conference that high inflation in recent months has affected consumer confidence and the overall economic challenges have increased uncertainty in demand, which has also led to a decline in demand in the chip market. MediaTek has observed that customers and their sales channels have begun to actively adjust their inventories, which is expected to continue over the next two to three quarters, and MediaTek will carefully manage its inventory, costs and expenses.
MediaTek emphasized that the company has gone through several cycles over the past 25 years and today holds a leading position in the world with a number of sizable businesses growing steadily.
