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Qualcomm remains dominant smartphone processor vendor

News by Andrew Kameka on Monday August 06, 2012.

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Qualcomm is still the leading producer of smartphone processors, according to the latest Strategy Analytics report. Qualcomm secured a 44 percent revenue share of the processor market, making the San Diego-based company the leading chipset provider in the first quarter of 2012.

Qualcomm's revenue share dropped from 51 percent in the same period last year. Strategy Analytics attributes the decline to strong competition from Broadcom and Mediatek in the low-end smartphone market. High sales in China and other emerging markets led analyst Sravan Kundojjala to say, "Broadcom and MediaTek are emerging as credible threats to Qualcomm with their baseband-integrated applications processor strategy."

Despite the growing competition in the low end market, Qualcomm continues to enjoy a run of success with midrange and high-end smartphone devices. The company reported an 18 percent increase in earnings in its most recent quarter, and has struggled to meet high demand for its Snapdragon processors.

Strategy Analytics estimates that smartphone processors generated a total of $2.47 billion in Q1 2012. Qualcomm was the top supplier, followed by Samsung, Texas Instruments, Broadcom, and MediaTek.

Marvell fell out of the Top 5 because of low sales from RIM, its biggest customer. NVIDIA failed to land among the top vendors because it has not managed as many smartphone sales as it has with tablets. However, that may change later this year now that NVIDIA's Tegra 3 with Icera modem supports LTE in the U.S.

source: Strategy Analytics

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Andrew Kameka
Andrew is based in Miami, Florida.

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