BOSTON, Oct. 18, 2016 /PRNewswire/ -- The global cellular baseband processor market declined 2 percent year-over-year falling to $10.5 billion in 1H 2016, according to Strategy Analytics Handset Component Technologies service report, "Baseband Market Share Tracker Q2 2016: MediaTek and Spreadtrum Together Take One-third LTE Volume Share." Click here for this report: http://sa-link.cc/1gZ
According to this Strategy Analytics research report Qualcomm, MediaTek, Samsung LSI, Spreadtrum and HiSilicon captured the top-five baseband revenue share spots in 1H 2016. Despite increased competition, Qualcomm maintained its baseband market share leadership with 50 percent revenue share, followed by MediaTek with 23 percent and Samsung LSI with 12 percent. LTE basebands continued to witness strong double-digit growth while 3G and 2G baseband segments declined sharply in 1H 2016.
Sravan Kundojjala, Associate Director, commented, "As a result of increased competition and market expansion, Qualcomm's LTE unit share dropped to 54 percent in 1H 2016, from 67 percent in the same period last year. After a difficult 2015, Qualcomm showed signs of recovery with significant traction for its latest flagship chip Snapdragon 820 in 1H 2016, which has helped the company improve its ASP this year. We expect Qualcomm to continue to improve its baseband shipment mix through 2016 with the help of increased shipments of smartphone applications processors, partly due to Apple dual-sourcing modems for its new iPhone 7 and 7 Plus."
According to Stuart Robinson, Executive Director of the Strategy Analytics Handset Component Technologies service, "MediaTek's LTE shipments more than doubled in 1H 2016 compared to 1H 2015. MediaTek's LTE growth was fueled by its strong presence in China and other emerging markets and its strong mid-tier LTE product portfolio. Except for Apple and Samsung almost all major handset manufacturers now use MediaTek's LTE chips and we believe MediaTek will continue to gain share through 2016."
Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service, added, "For the first time, LTE baseband shipments accounted for over 50 percent of total baseband shipments in Q1 2016 and this trend continued in Q2 2016 too. Qualcomm, MediaTek, Spreadtrum, Samsung LSI, HiSilicon and Intel all benefited from this growth. Intel, in particular, with its new LTE design-win at Apple, is poised for share gains in 2H 2016."
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SOURCE Strategy Analytics