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Qualcomm leads the $8.9 billion global smartphone chip market – Gadgets Now

Qualcomm leads the $8.9 billion global smartphone chip market

Chip-maker Qualcomm has captured the smartphone application processor (AP) market with a 45 percent revenue share in the first quarter (Q1) of this year, followed by MediaTek with 25 percent and Apple with a 22 percent share, according to a new report.

The global smartphone AP market grew 35 percent to reach $8.9 billion in Q1.

According to Strategy Analytics, 5G-attached AP shipments accounted for 53 percent of total smartphone AP shipments in the January-March period.

Despite momentum with Snapdragon flagship chips, Samsung Foundry lost share due to weak Exynos shipments.

“Qualcomm’s 4 nm-based flagship AP Snapdragon 8 Gen 1 gained strong traction in Q1 2022. The company’s increased share in Samsung‘s Galaxy S devices drove its smartphone application processor (AP) revenue to an all-time high, “said Sravan Kundojjala, Director of Handset Component Technologies service.

Qualcomm has been able to navigate China and macro concerns well with its premium and high-tier 5G APs, which are seeing high demand from Android smartphone manufacturers.

“Samsung’s Exynos AP shipments fell 40 percent in Q1 due to increased competition from Qualcomm at Samsung Mobile. However, the company showed signs of recovery with mid-range APs such as the Exynos 1280, featured in high-volume Galaxy A-series devices,” Kundojjala said.

Smartphone APs manufactured in 7 nm and below process nodes accounted for 48 percent of total smartphone AP shipments in Q1.

“The low-end smartphone market demand is currently weak. We think inventory digestion will happen in the second-half of 2022 as vendors continue to destock their supplies,” said the report.

New entrants Google and JLQ Technologies (a JV of Leadcore and Qualcomm) together shipped less than a million APs in Q1 2022. On the other hand, HiSilicon’s shipments declined to near zero.

“MediaTek and Unisoc both posted an impressive performance in Q1 2022. MediaTek’s Dimensity 9000 premium tier AP was off to a promising start, but shipments amounted to slightly less than 1 million during the quarter,” said Kundojjala.



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