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The global handset baseband processor market grew 5% on year to reach US$22.3 billion in 2016, according to Strategy Analytics. Qualcomm, MediaTek, Samsung LSI, Spreadtrum and HiSilicon grabbed the top-five baseband revenue share spots during the year.
Qualcomm, despite intense competition, maintained its baseband leadership with 50% revenue share, followed by MediaTek with 24% revenue share and Samsung LSI with 10% revenue share in 2016. LTE basebands registered a robust 36% on year growth in 2016 while all other baseband segments declined sharply.
"Qualcomm continues to be the technology and market share leader in the baseband market and announced the world’s first gigabit-class LTE baseband chip and 5G baseband chip in 2016," said Strategy Analytics associate director Sravan Kundojjala. Nevertheless, Qualcomm’s LTE unit share dropped to 52% in 2016 from 65% in 2015.
"Qualcomm couldn’t retain 100% baseband share in share in Apple’s new iPhone 7 and 7 Plus devices and lost some LTE baseband volume to Intel," Kundojjala continued. "Despite share losses, Qualcomm managed an impressive 8% year-over-year growth in its LTE shipments, thanks to strong traction for its Snapdragon applications processor line up."
Second-ranked MediaTek continued its LTE share gains in 2016 and more than doubled its LTE baseband shipments. "MediaTek’s Helio P and non-Helio mid-range and entry-tier LTE products all gained good traction in emerging markets," said Stuart Robinson, executive director of Strategy Analytics’ handset component technologies service.
"In late 2016, MediaTek made inroads at Samsung Mobile but we estimate Samsung accounted for just 1% of MediaTek’s total LTE shipments," Robinson noted. "Despite impressive performance in 2016, MediaTek is likely to face challenges in 2017, owing to slow modem roadmap progress."
"Intel’s LTE baseband shipments quadrupled year-over-year in 2016, helped by Apple iPhone design-wins," said Christopher Taylor, director of the Strategy Analytics RF & wireless components service. "Strategy Analytics estimates Intel holds a bigger share of iPhone 7 and 7 Plus volumes than Qualcomm."
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