Qualcomm remained the largest SoC provider in Q3 2017

According to a new report by research firm Counterpoint, Qualcomm remained the largest System-on-Chip (SoC) provider for smartphones in the Q3 2017 with 38 percent market share in terms of shipment.
The report said that Qualcomm’s SoC shipments almost doubled annually in the $300 to $400 wholesale price segment, driven by increased shipments of brands like OPPO, Vivo, and Xiaomi.

Research Analyst, Shobhit Srivastava, “Qualcomm led the smartphone SoC market strengthening its position further capturing 42 percent of the total SoC revenues in Q3 2017. The San Diego based technology company saw rising adoption for its mid to high range SoCs by the fast-growing Chinese brands, boosting its SOC shipments 15 percent compared to last year. Apple took the second spot capturing 20 percent value share banking on steady performance for its iPhone portfolio followed by MediaTek, Samsung, and HiSilicon (Huawei).

Meanwhile global smartphone SoC market grew 19 percent annually in Q3 2017 crossing $8 billion in chipset revenues.

Apple SoC shipments increased 4 percent annually and recorded a 15 percent growth sequentially due to the launch new iPhones in Q3 2017, however, MediaTek’s smartphone SoC revenues declined 10 percent annually, but increased 4 percent sequentially.

Samsung was the fastest growing smartphone SoC player in Q3 2017 in terms of shipment but growing from a smaller base. The SoC shipments grew 59 percent annually for the Korean vendor benefiting its LSI division supplying to its own Mobile division, the report added.

Srivastava, further added, “The vertically integrated players like Samsung, Apple and Huawei have been increasingly employing their own SOCs within their portfolio over the last few years. As a result, the combined share of the SoCs of these big three has rose from 20 percent level in 2015 to around 30 percent level in terms of volumes. This has somewhat hurt hare of some of the horizontal players such as MediaTek mainly and likes of Marvell, Broadcom and others which were forced to exit this space.”

“The focus in the smartphone SoC market has shifted away from the number of processor cores to the integration of newer technologies driving newer experiences. For example: focusing on immersion to unlock new experiences such as AR/VR/Depth Sensing leveraging integrated ISP (Image Signal Processors) and GPUs, to other areas such as Artificial Intelligence engines, dedicated security architecture at chipset level, enhanced connectivity paving the path to 5G and higher performance at lower power consumption levels, ” Counterpoint Research Director Neil Shah said.

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