Chipset battle heats up as younger demographics recognise value of AI-powered features: Study

Two major chipset manufacturers - MediaTek and Qualcomm - are locked in a tight battle as younger demographics have started to show a keen interest in technical specifications. According to a study, 63 per cent of Gen Z are aware of AI-powered smartphones. This trend coincides with the arrival of AI-powered smartphones promising enhanced performance and superior user experiences, including for content creation, consumption, and gaming, amongst others.

A consumer survey by CyberMedia Research (CMR) shows that the tech-native Gen Alpha exhibits a keen interest in chipset details and performance.

“The survey underscores the growing importance of chipsets for younger demographics. Their digital fluency translates into a keen interest in technical specifications. Chipset brands that can deliver innovative solutions to meet these evolving expectations are likely to resonate with this future market segment. MediaTek's strong brand awareness among Gen Alpha suggests they are well-positioned in this regard,” said Prabhu Ram, Head- Industry Intelligence Group (IIG), CyberMedia Research (CMR).

Here are the other key findings:

- Chipset battle heats up: Both MediaTek and Qualcomm are locked in a tight battle. MediaTek holds a slight edge in brand salience with a score of 69 (out of 100), followed closely by Qualcomm at 62. This extends to brand awareness, with both brands showing strong presence amongst Gen Alpha (MediaTek 37 per cent, Qualcomm 34 per cent) and Gen Z (MediaTek 32 per cent, Qualcomm 30 per cent). Interestingly, Samsung follows closely behind in Gen Alpha awareness with a 21 per cent share, while UNISOC captures 8 per cent.

- Performance and Trust Drive Choice: The survey delves deeper, exploring factors influencing chipset brand preference. Consumers prioritizing performance and longevity are increasingly willing to invest in smartphones powered by trusted chipset brands. Both MediaTek and Qualcomm enjoy strong customer satisfaction, with MediaTek holding a slight edge (49 per cent vs. 47 per cent). Samsung (45 per cent) and UNISOC (35 per cent) are placed third and fourth.

- MediaTek Emerges as Top Contender: MediaTek emerges as a leader in this area, with the highest customer satisfaction (49 per cent) and brand advocacy (Net Promoter Score of 63 per cent). Users associate MediaTek with excellence in ‘Performance Excellence’ (65 per cent) and ‘AI Prowess’ (64 per cent).

- Qualcomm: A Pillar of Reliability: Qualcomm maintains its reputation for ‘Reliability and Stability’ (63 per cent), with a brand image leaning towards ‘cutting-edge technology’. Notably, Qualcomm enjoys a healthy 26 per cent current usage share amongst Gen Z. Qualcomm polled 47 per cent in customer satisfaction, and brand advocacy (NPS of 48 per cent).

- Willingness to Pay Premium: A whopping 40 per cent are willing to pay a premium for MediaTek, compared to 36% for Qualcomm, the long-time leader. This shift suggests a new era where chip brand recognition is translating into a key purchase driver.

- Gen Alpha - The Future Market: The tech-native Gen Alpha exhibits a keen interest in chipset details and performance. MediaTek's dominance in brand awareness (37 per cent) among this demographic signifies their keen interest in chipset details and advanced features. This trend underscores the need for continuous innovation to cater to the evolving needs of tech-savvy demographics.