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LTE Dominance Raises Qualcomm's Baseband Share to Two Thirds in Q3 2013
Spreadtrum Made Strong Progress
Boston, MA - December 20, 2013 - The global cellular baseband processor market grew 10.3 percent year-over-year to reach $4.9 billion in Q3 2013, according to the Strategy Analytics Handset Component Technologies (HCT) service report, "Baseband Market Share Tracker Q3 2013: Qualcomm Grabs Two-Thirds of Revenue Share."
Strategy Analytics estimates that Qualcomm, MediaTek, Intel, Spreadtrum, and Broadcom captured the top-five revenue share spots in the cellular baseband processor market in Q3 2013. Qualcomm maintained its dominance with 66 percent revenue share, followed by MediaTek with 12 percent revenue share and Intel with 7 percent revenue share.
According to Sravan Kundojjala, Senior Analyst, "Qualcomm's baseband revenue share increased to 66 percent in Q3 2013, thanks to its stranglehold on the LTE baseband market. Over the last four years, Qualcomm spent $14 billion on R&D, which helped the company to gain over 95 percent revenue share in the LTE baseband segment. While Qualcomm's LTE baseband technology and market share leadership are unquestioned, we believe that certain competitors' products are production-ready and have the potential to take share from Qualcomm in 2014, especially in the mid-to-low tier."
According to Stuart Robinson, Director of the Strategy Analytics Handset Component Technologies service, "Strategy Analytics believes that Broadcom has the potential to emerge as a key LTE alternative to Qualcomm in 2014. Broadcom is still a minor player in the baseband market and cannot afford any missteps as the year 2014 is shaping up to be an important one for the company. Strategy Analytics believes that only a successful LTE execution in 2014 will secure the long-term outlook for Broadcom's Mobile & Wireless business division."
According to Christopher Taylor, Director of the Strategy Analytics RF and Wireless Component (RFWC) service, "Low-cost Chinese baseband suppliers RDA Microelectronics and Spreadtrum, both of which recently received buyout offers from state-owned Tsinghua Unigroup, together ranked number two in baseband unit share terms in Q3 2013. With its low-cost advantage and strong financial back up from Tsinghua, RDA and Spreadtrum's combination has the potential to take on global players such as Qualcomm."
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