Qualcomm captures over 50% volume share in 5G baseband market

The global cellular baseband processor market grew 20 percent to $6.2 billion in Q2 2020, according to Strategy Analytics.
Qualcomm 5G SnapdragonQualcomm, HiSilicon, MediaTek, Intel and Samsung LSI captured the top-five cellular baseband revenue share spots in Q2 2020.

Qualcomm led the wireless baseband market share with 39 percent revenue share in Q2 2020, followed by HiSilicon with 22 percent and MediaTek with 17 percent.

Strategy Analytics estimates that baseband shipments declined 15 percent in Q2 2020, driven by Covid-19 pandemic. GSM/GPRS/EDGE, W-CDMA and LTE baseband shipments all declined sharply in Q2 2020.

5G basebands registered strong growth and helped the overall baseband market to post the highest revenue figure in the last seven quarters.

Qualcomm’s baseband ASP reached their 15-year highest in Q2 2020, thanks to demand for 5G smartphones. Qualcomm captured just over 50 percent volume share in the 5G baseband market.

Qualcomm is well-positioned to grow its baseband shipments and revenue further in 2H 2020, driven by iPhone 5G models and mid-range Android 5G.

MediaTek gained share in both 4G and 5G baseband markets during Q2 2020. MediaTek has crossed the double-digit market share mark in the 5G baseband market in Q2 2020. 5G basebands helped MediaTek to post 63 percent year-over-year baseband revenue growth in Q2 2020.

Strategy Analytics believes that MediaTek will continue its share gains through 2020, driven by its Dimensity-branded 5G basebands and Helio-branded 4G basebands.”

Both HiSilicon and Samsung LSI lost share in their baseband business in Q2 2020. However, both companies made progress in the 5G baseband market and expanded into mid-range 5G.

MediaTek and Qualcomm may come to assist Huawei if they secure licenses in time to supply key mobile phone components to Huawei.