To reduce reliance on third-party vendors, leading smartphone makers like Samsung and Huawei have increased the use of their own chipset in their products. According to IHS Markit, this is causing a major shift in the market. The report shows that Huawei and Samsung’s internal chipset shipments in the third quarter of 2019 increased by more than 30% YoY. However, Qualcomm’s share fell by 16.1%.

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In addition, Samsung uses its Exynos processor in about 80.4% of mid-range smartphones in the third quarter of 2019, up from 64.2% in 2018. Overall, Samsung smartphones using Exynos reached 61.4% this quarter. On the other hand, 74.6% of Huawei’s smartphones in the third quarter uses its own Kirin series, an increase from 68.7% YoY. This is a major shift for the Chinese giant, which previously used Kirin chipsets on flagship smartphones. However, its mid-range line-up is now using its in-house chip.

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The report adds that Qualcomm’s share of Huawei’s shipments dips from 24% in the third quarter of 2018 to 8.6% in the third quarter of 2019. On the other hand, MediaTek chips on Huawei’s devices move up to 16.7% this quarter, up from 7.3% in the same period last year.

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However, both Qualcomm and MediaTek are struggling to maintain and expand their market share. With brands such as Xiaomi, OPPO, and Vivo becoming major customers of Qualcomm and MediaTek, the competition between these two chip manufacturers is becoming increasingly fierce.

In the third quarter of 2019, Qualcomm maintained the highest share in the global mobile processor market with a 31% share. MediaTek closely follows with a 21% market share. Samsung Exynos and Huawei Kirin have 16% and 14% market share.

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