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Spreadtrum wins big in smartphone market

Posted: 20 Mar 2013 ?? ?Print Version ?Bookmark and Share

Keywords:smartphone market? MediaTek? Spreadtrum? mobile handsets?

The smartphone demand surge in China was a big mobile market mover in 2012 and smartphone chip suppliers MediaTek Inc. and Spreadtrum Communications Inc. benefitted from this market boom.

The story of 2013 will continue to be the growing smartphone market, as the trend spreading far and wide, into India and Southeast Asia.

Leo Li, chairman and CEO of Spreadtrum, told EE Times, "We are so busy. We can't keep up with the growing smartphone demand." This might sound like a gratuitous remark, but Li actually means it.

Earlier this year, market research firm Canalys predicted that China will cement its lead as the world's largest smartphone market in 2013, with the nation expected to sell 240 million smartphones, roughly one third of global shipments. In contrast, the United States, the world's second-largest smartphone market, is likely to absorb 125 million, the market research firm said.

2013 smartphone shipment forecast

Source: Canalys

However, the hot smartphones in China, India and elsewhere in Southeast Asia are different from those sold in the United States. U.S. models are "heavily influenced by Apple's iPhones and Samsung's Galaxy S3," and their smartphone market is "much more mature and saturated," explained Spreadtrum's Li. In contrast, handsets purchased by China's first-time smartphone buyers are cheaper, usually under $50 per handset, and feature typically a 3.5-inch screen. They run on an Android 2.1 operating system.

The story is similar in India, too. Eighty percent of handsets sold by Micromax, India's leading mobile handset brand (in which Spreadtrum invested), are the low-end smartphones designed to work in India's EDGE network, Li said.

As global smartphone chip suppliers, such as ST-Ericsson, Renesas Mobile, Marvell and Nvidia, struggle to break into the high-end smartphone market dominated by Qualcomm and Apple, Spreadtrum and MediaTek, are having a field day in sharing what appears to be a wide-open mid- to low-end smartphone segment.

Notwithstanding the price, such low-end smartphones are nothing to be sneered at. Li touted their usefulness and high performance. Good examples are Spreadtrum's 1GHz Android low-cost smartphone platforms such as SC8810 (TD-SCDMA) and SC6820 (EDGE/GPRS/GSM), said Li. While both are based on an integrated baseband/apps processor using a single ARM Cortex A5 core, they can drive low-end smartphones with performance as good as Apple's iPhone 4, he claimed.

Wait. Is Li really talking about his single-core apps/baseband processor?

On par with iPhone 4?
"Of course, our handset customers are equally skeptical, when it comes to the performance of CPU/GPU performance of our chips. So before they decide to use our chips, they run a test. They use, for example, Geekbench, an application designed to offer a comprehensive set of benchmarks to quickly measure processor and memory performance," said Li. "Our 1-GHz low-cost smartphone platforms can process data as fast as that of iPhone 4. Our Geekbench score is as high, or even better than that of iPhone 4."

MediaTek vs. Spreadtrum
If both MediaTek and Spreadtrum are carving up what appears to be an explosive mid- to low-end smartphone market in China, what's Spreadtrum's game plan to compete against MediaTek?

"That market is so big that the two companies can comfortably coexist," said Li.

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