The outfit has seen growth in shipments of the company's non-mobile SoC products.
MediaTek’s AI-enabled Helio P90 and P35 series with an enhanced camera and 3D sensing capabilities for AR/VR experiences have been doing well. Mass shipments of the new chips, which have received positive feedback from brand device vendors, are slated to kick off in the second quarter.
The outfit is also expanding in the non-mobile SoC field. The company has been diversifying its offerings to include SoC solutions for voice-assistant devices and IoT-related applications and developed its ASIC business that is building up its IP portfolio for chip demand coming from the server, high-speed transmission and AI sectors.
MediaTek thought revenues would decline 12-20 percent sequentially in the first quarter of 2019 and register flat or slight growth.
MediaTek CEO Rick Tsai commented during the company's most recent investors meeting that the worldwide smartphone market growth would remain slow until 5G-compatible devices become commercially available.
MediaTek is stepping up the development of its 5G-enabled solutions, and the company expects to introduce its 5G SoC series at the end of 2019 following the launch of its 5G modem chip in the first half of the year.
MediaTek will roll out its new chip solutions for the next-generation Wi-Fi technology - Wi-Fi 6 (802.11ax), and automotive electronics products in 2019, Tsai said.
The company will continue to diversify its offerings for further product mix improvement, Tsai said.
Improvement in MediaTek's product mix is bearing fruit. Despite a revenue fall of up to 20 percent, MediaTek expects to post a gross margin of 38-41 percent in the first quarter of 2019 compared with 38.9 percent in the prior quarter.
MediaTek set its target gross margin this year at 40 percent, according to Tsai.