1H 2017 smartphone apps processor market: Qualcomm gains further share

MediaTek Struggles to Match its 2016 Performance

Boston, MA - October 25, 2017 - The global smartphone Applications Processor (AP) market declined 5 percent year-over-year to reach $9.4 billion in 1H 2017, according to Strategy Analytics Handset Component Technologies service report, “Smartphone Apps Processor Market Share Q2 2017: Qualcomm Gains Share While MediaTek and Spreadtrum Falter.”

According to this Strategy Analytics research report, Qualcomm , MediaTek , Apple , Samsung LSI and Spreadtrum captured the top-five revenue share rankings in the global smartphone AP market in 1H 2017. Qualcomm maintained its smartphone AP market share leadership with 42 percent revenue share, followed by Apple and MediaTek each with 18 percent revenue share.

Strategy Analytics estimates that 64-bit APs registered a solid 24 percent year-over-year growth and accounted for 86 percent of total smartphone AP shipments in 1H 2017.

Sravan Kundojjala, Associate Director at Strategy Analytics, commented,

“After a successful 2016, Qualcomm continued its momentum and gained market share with the help of a strengthened portfolio across the board from flagship to mid-range. After missing the initial 14 nm FinFET AP wave, Qualcomm made sure it is one of the first companies with a commercial 10 nm smartphone AP. Qualcomm’s semi-custom 10 nm flagship 64-bit AP Snapdragon 835, which integrates a gigabit-class LTE modem, has seen greater success than its predecessor Snapdragon 820 / 821. Strategy Analytics believes that Qualcomm is poised for further share gains through 2017 with its strengthened Snapdragon 600-series of APs.”

Stuart Robinson, Executive Director of the Strategy Analytics Handset Component Technologies service, added,

MediaTek hit a rough patch in 1H 2017, after registering a robust growth in 2016. MediaTek’s weak portfolio coupled with increased competition from Qualcomm contributed to its share losses in 1H 2017. MediaTek’s flagship Helio X series has not seen much success so far while the mid-range Helio P series of chips performed strongly. Understandably, MediaTek is set to de-emphasis Helio X in favour of Helio P to optimise its investment and to recover market share in 2H 2017. Strategy Analytics believes that MediaTek’s recovery will take time as its modem technology is still generations behind market leader Qualcomm.”

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