Market Overview

Strategy Analytics: Q1 2018 Baseband Market Share: Samsung LSI Overtakes MediaTek

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LTE Baseband Segment Continues to be the Revenue Savior

The global cellular baseband processor market grew a modest 0.3
percent year-over-year to reach $4.9 billion in the first quarter Q1
2018, according to Strategy Analytics Handset Component Technologies
service report, "
Baseband
Market Share Tracker Q1 2018: Samsung LSI Overtakes MediaTek
."

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https://www.businesswire.com/news/home/20180731005614/en/

1Q18 SA Baseband Market Share Tracker (Graphic: Business Wire)

1Q18 SA Baseband Market Share Tracker (Graphic: Business Wire)

This research report from Strategy Analytics estimates that Qualcomm,
Samsung LSI, MediaTek, HiSilicon and UNISOC (Spreadtrum
& RDA) captured the top-five revenue share rankings in the
global cellular baseband processor market in Q1 2018. Qualcomm continues
to gain market share and finishes Q1 2018 with 52 percent baseband
revenue share followed by Samsung LSI with 14 percent and MediaTek with
13 percent.

  • The LTE baseband segment continues to be the sole positive
    performer registering an impressive 9 percent shipment growth in Q1
    2018 while contrasting with double-digit declines in the 2G and 3G
    baseband segments.
  • MediaTek and UNISOC (Spreadtrum & RDA) continue to cede
    market share and Q1 2018 was no exception.
  • Altair, HiSilicon, Intel, Qualcomm, Sequans
    and Samsung LSI all grew baseband shipments year-over-year in
    Q1 2018.

Sravan Kundojjala, Associate Director, commented, "Samsung LSI,
a prime beneficiary of the 3G to 4G transition, overtook MediaTek
in Q1 2018 to propel itself to the number two revenue share position
in the baseband market. In the wake of multiple high profile baseband
market exits in the last decade, Samsung LSI stepped in to fill a
supplier void at its primary customer Samsung Mobile. Strategy Analytics
believes that Samsung LSI's LTE baseband technology, product portfolio
and integration capabilities are now in the same league as the market
leader Qualcomm. Samsung LSI, however, to date have not struck gold
outside its in-house customer Samsung Mobile. Strategy Analytics feels
that the current global trade wars have opened a rare window of
opportunity to Samsung LSI, as a South Korean company to compete for
external baseband customers and it remains to be seen how the company
will respond."

According to Stuart Robinson, Executive Director of the Strategy
Analytics Handset Component Technologies service, "MediaTek
and UNISOC (Spreadtrum & RDA) continued to cede market share
and for the fourth consecutive quarter both companies saw a double-digit
year-over-year baseband shipment decline in Q1 2018. MediaTek showed
signs of recovery in late Q1 2018 and is on track to perform better
though the rest of 2018 with the help of an improved product portfolio.
UNISOC (Spreadtrum & RDA), despite gains in LTE feature phones,
continued to lag the competition in terms of product strength. Both
MediaTek and UNISOC (Spreadtrum & RDA) need to address the weakness in
their modem product portfolio and claim their stake in 5G to enable
themselves to match fast moving Qualcomm."

Christopher Taylor, Director of the Strategy Analytics RF &
Wireless Components service
, added, "For the third consecutive
quarter, Qualcomm saw its shipments grew year-over-year in Q1
2018, thanks to the company's share gains at Chinese handset
manufacturers. After playing a pivotal role in multi-mode LTE smartphone
commercialization, Qualcomm is set to repeat the feat in multi-mode 5G
New Radio (NR) with its pioneering efforts. Aside from handsets,
Qualcomm also continues to progress in cellular tablets, IoT
and automotive baseband segments. Strategy Analytics estimates
that non-handset baseband segments accounted for approximately 10
percent of Qualcomm's total baseband shipments in Q1 2018 registering
faster growth than the handset segment."

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory
services, consulting and actionable market intelligence for emerging
technology, mobile and wireless, digital consumer and automotive
electronics companies. With offices in North America, Europe and Asia,
Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

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