Qualcomm share drops in LTE baseband processor market


Strategy Analytics says chipset maker Qualcomm experienced drop in market share in LTE baseband processor and smartphone Applications Processor markets in Q3 2015.

The cellular baseband processor market fell 12 percent to $5.1 billion in Q3 2015, according to the Strategy Analytics Handset Component Technologies service report, Baseband Market Share Tracker Q3 2015: LTE Basebands Accounted for Three-Fourths of Total Baseband Revenue.

Cellular baseband processor market

Qualcomm 55%
MediaTek 23%
Samsung LSI 7%

Except for LTE basebands, all other baseband segments declined in Q3 2015.

Due to increased LTE baseband competition and Android smartphone slowdown, Qualcomm’s LTE baseband unit share dropped to 60 percent in Q3 2015. Qualcomm managed a double-digit growth in its LTE baseband shipments, thanks to its Snapdragon chips.

Strategy Analytics predicts Qualcomm’s promising Snapdragon 820 will help Qualcomm regain market share in 2016.

MediaTek registered almost a 5-fold LTE baseband shipment growth due to its LTE momentum in China and other emerging markets.

MediaTek’s mid-range and high-end LTE chips performed well and featured in multiple high volume handsets from Chinese OEMs such as Xiaomi, Lenovo, Huawei, ZTE, TCL, Meizu, Oppo and others.

Samsung LSI’s LTE basebands featured in Galaxy S and Note series devices and mid-range Galaxy A and J series phones from Samsung Mobile.

HiSilicon’s scored multiple high volume design-wins at its parent company Huawei. There will be baseband success for both Samsung LSI and HiSilicon on the strength of increased traction at in-house customer.

Meanwhile, the smartphone Applications Processor (AP) market declined 9 percent to $5.3 billion in Q3 2015, according to Strategy Analytics.

Smartphone Applications Processor (AP) market

Qualcomm 36%
Apple 27%
MediaTek 20%
Samsung LSI

Qualcomm’s revenue share in smartphone Applications Processor market dropped to 36 percent in Q3 2015 from 48 percent in Q3 2014.

The report said mid-range 64-bit chips such as the Snapdragon 410 and 615 performed well and helped Qualcomm to maintain strength in this key volume segment. Qualcomm’s refreshed mid-range portfolio coupled with its custom architecture-based chips will help Qualcomm rebound strongly in 2016.

Samsung LSI almost doubled its smartphone AP shipments in Q3 2015 due to its high volume mid-range and flagship design-wins at its primary customer Samsung Mobile. Samsung LSI’s introduction of 14 nm-based chips helped to boost its shipments.

Tablet Applications Processor (AP) market

The tablet Applications Processor (AP) market declined 38 percent to $828 million in Q3 2015.

Apple 37%
MediaTek 17%
Qualcomm 16%
Samsung LSI

Except for MediaTek, almost all major tablet AP vendors registered negative growth in Q3 2015.

MediaTek overtook Intel to capture the top spot in non-iPad tablets in Q3 2015. The tablet AP market, an extension of smartphone AP supply chain, took a hit in recent quarters, thanks to long replacement cycles and concentration of low-cost players.

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