Strategy Analytics: 2017 Baseband Market Share: Intel, HiSilicon and Samsung LSI Register Double-Digit Growth

MediaTek and Spreadtrum Lost Market Share

BOSTON--()--The global cellular baseband processor market declined 4 percent year-over-year to reach $21.2 billion in calendar year (CY) 2017, according to Strategy Analytics Handset Component Technologies service report, “Baseband Market Share Tracker 2017: Intel, HiSilicon and Samsung Register double-digit LTE Shipment Growth.”

Based on this research from Strategy Analytics, Qualcomm, MediaTek, Samsung LSI, HiSilicon and Spreadtrum grabbed the top-five revenue share spots in the global cellular baseband processor market in calendar year 2017. Intel ranked number six, narrowly behind Spreadtrum. Qualcomm, the market leader, increased its baseband revenue share to 53 percent in 2017 followed by MediaTek with 16 percent revenue share and Samsung LSI with 12 percent.

  • Strategy Analytics estimates that except for the LTE baseband segment all other baseband segments continued to decline.
  • Except for MediaTek and Spreadtrum all other major baseband vendors registered positive year-on-year shipment growth in 2017. In 2017, baseband vendors pursued new opportunities such as LTE feature phones and cellular IoT applications.
  • Smaller baseband companies including Altair Semiconductor, GCT Semiconductor, Nordic Semiconductor and Sequans Communications are focusing on cellular IoT segment.

Sravan Kundojjala, Associate Director, commented, “Qualcomm’s baseband business returned to growth in 2017 after seeing two consecutive years of shipment decline. Despite facing strong challenge from HiSilicon, Intel and Samsung, Qualcomm finished 2017 on a strong note as the company’s strong relationships with Chinese manufacturers helped. Qualcomm gigabit-class LTE chips including the Snapdragon 835 featured in multiple high volume handsets in 2017 and the company continues to push the envelope with advanced modem features. Strategy Analytics believes that Qualcomm is well-situated to translate its superlative market share success in 4G to 5G in 2019 and beyond.”

According to Stuart Robinson, Executive Director of the Strategy Analytics Handset Component Technologies service, “Both MediaTek and Spreadtrum took a hit in 2017 and lost market share in 2017. Both companies could not accelerate their LTE product roadmaps and a sharp decline in 3G baseband chips compounded their problem. MediaTek is seeking a product-led comeback with cost-competitive and feature rich LTE chips such as Helio P60 and Strategy Analytics believes that MediaTek has the potential to win some lost share back in the second half of 2018. Spreadtrum, on the other hand, is pursuing the fast growing LTE feature phone segment and is also renewing its LTE smartphone chip effort to improve its volume. 2018 will be a critical year for both MediaTek and Spreadtrum as the industry is on the verge of entering the 5G era in 2019.”

Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service, added, “Despite drawing almost one hundred percent of their shipments from a single customer, HiSilicon, Intel and Samsung LSI all registered a double-digit LTE baseband shipment growth in 2017. Intel, with its iPhone design-wins, registered a strong double-digit LTE baseband shipment growth in 2017. Intel has already sustained two generations of iPhone design-wins and is well placed to continue its iPhone momentum with gigabit LTE chips in 2018.”

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

Contacts

Strategy Analytics, Inc.
European Contact:
Stuart Robinson, +44 1908 423 637
srobinson@strategyanalytics.com
or
US Contact:
Christopher Taylor, +1 617-614-0706
ctaylor@strategyanalytics.com

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Contacts

Strategy Analytics, Inc.
European Contact:
Stuart Robinson, +44 1908 423 637
srobinson@strategyanalytics.com
or
US Contact:
Christopher Taylor, +1 617-614-0706
ctaylor@strategyanalytics.com