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Strategy Analytics: Smartphone Apps Processor Market Jumped 41 percent in 2013

-- Qualcomm Widens Lead with 54 percent Revenue Share

BOSTON, Feb. 21, 2014 /PRNewswire/ -- The global smartphone applications processor market registered 41 percent year-on-year to reach $18 billion in 2013, based on preliminary estimates from the Strategy Analytics Handset Component Technologies service report, "Smartphone Apps Processor Market Share Q3 2013: Qualcomm, Apple and MediaTek Together Capture 80 Percent Revenue Share."

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Based on Strategy Analytics preliminary estimates, Qualcomm widened its lead in the smartphone applications processor market with 54 percent revenue share, followed by Apple with 16 percent share and MediaTek with 10 percent share in 2013.

Some of the highlights of this Strategy Analytics report:

  • Qualcomm, Apple, MediaTek, Samsung and Spreadtrum captured the top-five revenue share spots in the smartphone applications processor market in 2013.
  • Qualcomm capitalized on its flagship Snapdragon 600 and 800 families of chips and captured 54 percent revenue share in 2013. In addition, Qualcomm's mid-range Snapdragon 400 and 200 families of chips also gained strong traction across multiple price tiers.
  • Apple ranked number two with 16 percent revenue share in the smartphone applications processor market in 2013. Apple's industry first 64-bit smartphone applications processor A7, featured in the iPhone 5S, gained significant traction in the latter half of the year.
  • MediaTek ranked number three with 10 percent revenue share, thanks to the company's strong momentum in sub-$200 smartphones. MediaTek's 28 nm-based quad-core chips have been received well in 2013.
  • Samsung ranked number four in the smartphone applications processor market in 2013. Samsung's Exynos 5 Octa featured in flagship devices such as the Samsung Galaxy S 4 and Note 3. During 2013, Samsung also released its first baseband-integrated applications processor, a significant product in the search for future growth.
  • Spreadtrum ranked number five in the smartphone applications processor market with the help of its EDGE, TD-SCDMA and UMTS applications processors. For the first time, Spreadtrum gained double-digit volume share in the smartphone applications processor market in 2013.
  • Multi-core chips from Broadcom, Marvell and HiSilicon gained traction in 2013. Broadcom came under pressure from Marvell and Spreadtrum at its key customer Samsung in 2013, but managed to win multiple high-volume design-wins. Marvell's applications processor business entered a growth path, thanks to improved product portfolio and diversified customer portfolio.
  • Tegra smartphone revenue at NVIDIA recovered in the second half of 2013, thanks to the introduction of Tegra 4. NVIDIA's upcoming Tegra 4i LTE chip could improve its smartphone applications processor volume.
  • Intel captured a minor 0.2 percent revenue share in the smartphone applications processor market in 2013.

According to Sravan Kundojjala, Senior Analyst, "Qualcomm widened its lead over competition in the smartphone applications processor market in 2013, thanks to its LTE-integrated Snapdragon chips and strong execution. Strategy Analytics believes that Qualcomm's multi-mode LTE technology coupled with its in-house CPU, GPU and DSP technologies made Qualcomm a force to reckon with in the mobile processor market."

According to Stuart Robinson, Director of the Strategy Analytics Handset Component Technologies service, "Strategy Analytics estimates that low-cost suppliers MediaTek and Spreadtrum registered significant growth and together captured about one-third volume share in the smartphone applications processor market in 2013. Strategy Analytics asserts that MediaTek and Spreadtrum will have to focus on high-end LTE and global markets for further growth."

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 

European Contact: Stuart Robinson, +44(0) 1908 423 637, [email protected]

US Contact: Christopher Taylor, +1 617 614 0706, [email protected]

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