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Chronicles

The story behind the story

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Canalys Q4 2023 smartphone chip shipments: MediaTek rose 21% YoY to 117M, Apple rose 7% YoY to 78M, Qualcomm rose 1% YoY to 69M; Samsung dropped 48% YoY to 13M

Google Pixel is coming off of its best-selling year to date, but according to one report, Google shipped fewer Tensor chips in Q4 2023.

9to5Google Ben Schoon

Context & Ripple Effects

The chip-vendor figures complicate the handset narrative: Google had just been associated with a record Pixel sales year, yet its Tensor shipments were reportedly lower in the final quarter. That makes component volumes an imperfect proxy for a brand’s annual sell-through.

Apple’s earlier North American share gains, documented in 2022 shipment data, provide context for its continued large in-house chip volume, while the supplier results show markedly different momentum across the Android ecosystem.

First-order effects

  • MediaTek becomes the largest reported smartphone-chip shipper for the quarter, while Apple remains a major in-house silicon buyer and Qualcomm’s volume is broadly steady.
  • Google’s lower Tensor shipments temper the apparent translation of Pixel’s sales momentum into near-term custom-chip demand; Samsung’s sharp decline is the quarter’s largest supplier-volume reversal.

Second-order effects

  • MediaTek’s higher volume strengthens its position with handset makers seeking Android chip supply, increasing pressure on Qualcomm and Samsung to defend design wins and pricing.
  • The divergence between Pixel handset momentum and Tensor shipments makes inventory timing and product mix more consequential for Google’s chip planning than handset sales headlines alone.

Third-order effects

  • If these divergences persist, smartphone silicon competition will be shaped less by a single handset-market cycle and more by each vendor’s mix of merchant chips, in-house designs, and inventory management.
  • The results reinforce a broader Pixel shipment expansion that does not automatically produce a matching quarterly ramp in Google-designed silicon, underscoring the operational complexity of custom-chip strategies.

The trend: Smartphone makers and chip vendors are increasingly decoupling handset demand from silicon volume through a mix of merchant sourcing, custom designs, and inventory management.

Discussion

  • @canalys @canalys on x
    Canalys' latest interactive dashboard on smartphone processors reveals that @MediaTek was the world's top smartphone #semiconductor vendor in Q4, based on end-product shipment. @Apple obtained the majority of global end-product revenue. [image]
  • r/Android r on reddit
    Canalys' latest interactive dashboard on smartphone processors reveals that MediaTek was the world's top smartphone semiconductor vendor in Q4, based on end-product shipment. …