Strategy Analytics: Smartphone Apps Processor Revenue Jumps 58 Percent in Q3 2012

  Strategy Analytics: Smartphone Apps Processor Revenue Jumps 58 Percent in Q3
  2012

                           Qualcomm Maintains Lead

Business Wire

BOSTON -- January 10, 2013

Global smartphone applications processor market showed an impressive 58
percent year-on-year growth in Q3 2012 to reach $3.8 billion, according to the
Strategy Analytics Handset Component Technologies service report, “Smartphone
Apps Processor Market Share Q3 2012: Galaxy Momentum Helps Samsung Maintain
Number Two Spot.”

Based on Strategy Analytics estimates, Qualcomm led the smartphone
applications processor market with 42 percent revenue share in Q3 2012.
However, Qualcomm came under pressure from the growing competition during the
quarter.

Some of the highlights of this Strategy Analytics report include:

  * Qualcomm, Samsung, MediaTek, Broadcom and ST-Ericsson captured top-five
    spots in the smartphone applications processor market in Q3 2012.
  * Samsung ranked number two with 27 percent revenue share on the strength of
    its relationships with Apple and Samsung’s handset divisions.
  * MediaTek ranked number three with 12 percent revenue share in the
    smartphone applications processor market in Q3 2012 with the help of its
    EDGE, UMTS and TD-SCDMA applications processors.
  * Broadcom ranked number four in Q3 2012 as the company continued to benefit
    from its low-end Android smartphone design-wins at Samsung.
  * ST-Ericsson grabbed the number five spot as the company’s dual-core
    NovaThor processors gained strong traction at Sony and Samsung in Q3 2012.
  * For the first time, Texas Instruments dropped out of the top-five
    smartphone applications processor rankings in both unit and revenue terms
    in Q3 2012 as the company continues to retrench from the handset processor
    market.
  * Despite its very impressive performance in the tablet market, NVIDIA's
    smartphone market share has been relatively flat on year-over-year basis
    in Q3 2012. NVIDIA's up-coming LTE-integrated Tegra processors could
    change its smartphone fortunes in 2013.
  * Spreadtrum showed significant growth in the smartphone applications
    processor market in Q3 2012 and captured 1.7 percent revenue share with
    the help of its EDGE and TD-SCDMA smartphone applications processors.
  * Intel made slow progress and captured just 0.2 percent revenue share in
    the smartphone applications processor market in Q3 2012.

According to Sravan Kundojjala, Senior Analyst, “Qualcomm’s 28 nm-based LTE
Snapdragon processors have helped Qualcomm to widen its technology lead over
competitors. However, Qualcomm faced increased competition in the crucial
Android ecosystem from integrated processor vendors including Broadcom,
MediaTek, Spreadtrum and ST-Ericsson in Q3 2012. Strategy Analytics estimates
that Qualcomm’s share in the Android ecosystem dropped from over 60 percent in
early 2011 to about 35 percent in Q3 2012. Strategy Analytics believes that
Qualcomm still has plenty of room for growth in future quarters despite
increasing competition as less than 50 percent of Qualcomm's chipsets are
smartphone applications processors.”

According to Stuart Robinson, Director of the Strategy Analytics Handset
Component Technologies service, “MediaTek’s smartphone applications processor
shipments showed ten-fold year-over-year growth in Q3 2012. MediaTek continues
to chase Qualcomm hard with its integrated strategy and the company gained
significant share during the quarter. Strategy Analytics believes that
MediaTek has room for improvement in order to break into global smartphone
manufacturers’ supply chains.”

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

Contact:

Strategy Analytics, Inc.
European Contact:
Stuart Robinson, +44(0) 1908 423 637
srobinson@strategyanalytics.com
or
US Contact:
Christopher Taylor, +1 617 614 0706
ctaylor@strategyanalytics.com