Strategy Analytics: Q2 2019 Smartphone Apps Processor Market Share: AI Chips Show Strong Growth

Qualcomm Maintains Lead while HiSilicon Shows Strong Growth

BOSTON–(BUSINESS WIRE)–$AAPL—With Q3 results just round the corner it is worth remembering that in Q2 2019 the global smartphone Applications Processor (AP) market declined 2 percent year-over-year falling to $4.8 billion, according to Strategy Analytics’ Handset Component Technologies service report, “Smartphone Apps Processor Market Share Tracker Q2 2019: Qualcomm Maintains Lead with 40 percent Revenue Share.”

According to this research report from Strategy Analytics, Qualcomm, Apple, Samsung LSI, HiSilicon and MediaTek captured the top-five revenue share spots in the global smartphone applications processor (AP) market in Q2 2019. Qualcomm continued its smartphone AP market share leadership with 40 percent revenue share followed by Apple with 20 percent and Samsung LSI with 13 percent.

• The growth of artificial intelligence (AI)-enabled smartphone applications processor (AP) shipments continues to defy the overall market growth. AI has quietly taken off in smartphones and Strategy Analytics estimates that smartphone APs with on-device AI engines registered a robust 45 percent year-over-year shipment growth in Q2 2019. Qualcomm captured the top spot in the smartphone AI space.
• Smartphone applications processors (AP) with on-device AI engines accounted for nearly 50 percent of total smartphone APs shipped in Q2 2019 up from approximately 30 percent in Q2 2018.
• Most AP vendors are using their own or licensed non-Arm IP to address AI applications in smartphones. Arm, the CPU and GPU market leader in smartphones, is playing catch-up in AI.

Sravan Kundojjala, Associate Director at Strategy Analytics, commented, “After seeing two consecutive years of smartphone AP shipment decline, MediaTek and Unisoc once again saw their shipments slide year-on-year in Q2 2019. Both companies, however, showed signs of recovery on a sequential basis with renewed product line-ups and design-wins. MediaTek’s new Helio P90, P70 and P22 APs have been received well by the market and featured in multiple high volume smartphones from Chinese OEMs. Unisoc’s new Tiger-branded AP line-up looks competitive versus Snapdragon 600 and Helio P series of chips and has the potential to bring Unisoc back into the game.”

Stuart Robinson, Executive Director of the Strategy Analytics Handset Component Technologies service, added, “The vertically-integrated companies Apple, HiSilicon and Samsung LSI increased their cumulative smartphone AP market share to 37 percent in Q2 2019. HiSilicon, in particular, posted 28 percent AP shipment growth in Q2 2019. Despite vertical competition challenge, Qualcomm maintained its smartphone AP market share leadership and saw strong traction for its flagship Snapdragon 855 AP. Qualcomm’s strengthened Snapdragon 600-series and newly introduced Snapdragon 700-series of APs all performed well in Q2 2019. Qualcomm continues to leverage its strong relationships with Chinese smartphone manufacturers to generate significant volume for its Snapdragon APs.”

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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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