LTE boosts cellular baseband processor market

The 2012 global cellular baseband processor market registered 18 per cent YoY growth to reach $17.8 billion. This is according to Strategy Analytics that also stated that Qualcomm, MediaTek, Intel, Broadcom and ST-Ericsson took the top-five spots in the cellular baseband processor market last year. Qualcomm led the cellular baseband market with 52 per cent revenue share, followed by MediaTek with 12.5 per cent revenue share and Intel with 12.3 per cent revenue share.

According to Sravan Kundojjala, senior analyst, "Qualcomm maintained its dominance in the cellular baseband market with 52 per cent revenue share in 2012 on the strength of its time-to-market advantage with leading LTE baseband product portfolio. Strategy Analytics estimates that LTE basebands accounted for 21 per cent of Qualcomm's total baseband shipments in 2012. We believe that Qualcomm is well-positioned to improve its LTE product-mix further with the help of its strong relationships with global handset manufacturers."

According to Stuart Robinson, director of the Strategy Analytics handset component technologies service, "The global cellular baseband market returned to growth in 4Q12 after two consecutive negative growth quarters. Strategy Analytics estimates that LTE baseband shipments registered more than seven-fold growth in 2012 and significantly contributed to overall revenue growth due to higher than average selling prices. LTE basebands showed the fastest growth among all air interface technologies and accounted for 18 per cent of total cellular baseband revenue in 2012, up from just two per cent in 2011."