Smartphone Apps Processor Revenue Rises by 60 percent in 2012

Samsung Galaxy Note 2

According to the Strategy Analytics Handset Component Technologies report, global Smartphone apps processor market showed a great 60 percent growth in 2012, reaching $12.9 billion. Out of all this,

Apple, Qualcomm and Samsung Captured 70 Percent Revenue Share.

Qualcomm led with 43 percent revenue share in 2012, thus maintaining its first position in the Smartphone applications process. Qualcomm maintained its lead mostly because of its Snapdragon processor (Snapdragon 800, 600, 400, 200 and also Snapdragon S4, S3, S2, S1), that is used by most, if not all Smartphones within the market.

“Qualcomm strongly participated in the high-end market in 2012 with its APQ series stand-alone processors and its LTE Snapdragon processors.” Senior analyst in Strategic Analytics Sravan Kundojjala said.

Kundojjala believes that Qualcomm’s rise was thanks to its in-built CPU and graphics technologies.

Stuart Robinson the Strategic Analytics Director said that the applications processor market is growing exponentially, with merchant vendors like Qualcomm and MediaTek supplying to multiple customers on one hand and vertical vendors like Apple and Samsung designing their own chip on the other hand. Strategy analytics is estimating that even though the vertical vendors grabbed over a quarter of the applications processor market in revenue in 2012, there is plenty of room for merchant vendors to drive the economy and gain share.

The top five market leaders in the market were:

– Qualcomm, due to its strong relationship with most if not all global Smartphone manufacturers and its broad product portfolio, obtained 43 percent revenue, the largest in Smartphone processor global market.

– Apple followed at a distance with 16 percent, using its series in-design processors in popular iPhone 4, iPhone 4S and iPhone 5.

– Samsung grabbed third position with 11 percent, using Samsung’s Exynos processors in high profile Note II and Galaxy S III.

– MediaTek came fourth using processors integrated into low-to-mid range smart phones.

– Broadcom ranked fifth. Its application processors featured in multiple low-end Android Smart phones from Samsung.

– Intel, a giant among PC microprocessors obtained just about 0.2 percent. Intel has an upcoming microprocessor, Clover Trail+ dual-core x86 Atom, which might help in 2013.

– NVIDIA’s Tegra had a flat growth, but with its upcoming Tegra4i LTE chip, NVIDIA may have the ability to go after high volume markets. Other microprocessors like Free scale, Marvell, Renesas Mobile and Texas Instruments showed negative growth whereas ST-Ericsson and Spreadtrum registered significant growth.

[author ]Noeleen Mukoya is a third year information technology and Telecommunications student at Kenyatta University, Kenya.[/author]

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