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Qualcomm leapfrogs Intel in cellular baseband market in Q1

Posted: 26 Jun 2014 ?? ?Print Version ?Bookmark and Share

Keywords:Strategy Analytics? cellular baseband? Qualcomm? Intel? MediaTek?

Strategy Analytics has released a report showing that the global cellular baseband processor market logged a modest 2.5 per cent YoY growth to reach $4.7 billion in 1Q14. According to the report, Qualcomm, MediaTek, Spreadtrum, Marvell and Intel featured in the top-five cellular baseband revenue share rankings in Q1.

Qualcomm maintained its baseband market dominance with 66 per cent revenue share, followed by MediaTek with 15 per cent revenue share and Spreadtrum with five per cent revenue share. In 1Q14, Spreadtrum overtook Intel to capture the number three revenue share ranking.

According to Sravan Kundojjala, senior analyst at Strategy Analytics, "For the first time in the last three years, Intel dropped out of the top-three baseband revenue share rankings as its 2G and 3G baseband shipments declined sharply in 1Q14. However, Strategy Analytics believe that Intel is making progress in LTE basebands and the company's Cat 6 LTE baseband XMM 7260 has the potential to win some high profile sockets in 2H14."

According to Christopher Taylor, director of the RF and wireless component service, "Qualcomm grabbed two-thirds of revenue share in the baseband market in 1Q14, thanks to its diverse customer base and strong LTE product portfolio. Strategy Analytics calculates that Qualcomm's LTE revenue share has now dropped to 91 per cent in 1Q14 from over 95 per cent in 1Q13. As we predicted the competition in the LTE baseband market is heating up, in particular Intel and Marvell made progress with notable LTE design-wins in 1Q14. Strategy Analytics believes that Qualcomm has a plenty of opportunities in terms of its LTE product-mix as less than 50 per cent of baseband shipments were LTE basebands in 1Q14."

According to Stuart Robinson, director of the Strategy Analytics handset component technologies service, "MediaTek is now quickly establishing itself as a strong number two to Qualcomm in the baseband market. However, the company currently draws most of its growth from 2G and 3G markets only. In 1Q14, MediaTek had no share in LTE basebands and we reiterate that the company needs to ramp up its LTE efforts with its upcoming LTE slim modems and applications processors to continue its growth trajectory."

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