The smartphone AP market dwindled a bit in the past years, but the second quarter of 2015 has a seen a rather significant rise in the distributed market share of the respective application processor manufacturers (Samsung LSI, Qualcomm, Apple, MediaTek, Spreadtrum), with Qualcomm still holding the top spot.
The top five global AP revenues for the year were captured by the SoC manufacturers listed above, and the market in general generated a whopping 5 billion US dollars by the end of quarter 2 in 2015.
However, Qualcomm’s smartphone AP revenue continued to see a significant decline of 17% year over year to the second quarter of 2015, and the current share of chipset manufacturers holds up at 45% for Qualcomm, with Apple coming in second at 19 percent, and MediaTek closely following behind with 18 percent of total smartphone chipsets shipped.
Qualcomm’s poor returns this year can be attributed to its weakening chipset sales, which were mainly a result of the 810 SoC that failed to hold up to its advertised performance.
Sravan Kundojjala who is the associate director of Strategy Analytics, said, “Qualcomm continues to face a challenging market environment in 2015 as a result of lower volume contribution from its flagship Snapdragon 800 series of chips, increased competition from MediaTek and Samsung LSI and overall smartphone market slowdown”.
Sravan further commented, “Strategy Analytics believes Qualcomm’s upcoming Snapdragon 820 chip is shaping up to be a pivotal product in its history as the success of this chip is likely to define Qualcomm’s semiconductor future and Strategy Analytics feels Qualcomm’s strong heritage in custom CPU, GPU and DSP architectures will help significantly in its mission to regain market share”.
Although the smartphone applications processor has seen an increased market; the tablet AP market continues to decrease as the adoption of phones with larger displays continues to increase.
Apple’s A-series processors currently lead the tablet AP division with a 27% revenue share and Intel comes in second with 18 percent while Qualcomm follows closely behind in the third place.
“For the second consecutive quarter the tablet AP market declined year-over-year, thanks to longer replacement cycles and strong competition from large-screen smartphone devices,” Sravan hinted.
Chipsets with baseband integration (4G LTE etc) continue to gain a wider support and they accounted for 30% of the total AP market share by the end of the second quarter of this year.
We suppose this trend will continue in the coming years with Qualcomm, Samsung, MediaTek etc leading the way. In the meantime, drop your thoughts on the semiconductor market in the comments below.