Strategy Analytics: Qualcomm and MediaTek Gained Share at the Expense of HiSilicon in Smartphone Apps Processors

Trade Sanctions Hit HiSilicon

BOSTON–(BUSINESS WIRE)–The global smartphone applications processor (AP) market posted a double-digit year-on-year shipment and revenue growth in Q1 2021, according to Strategy Analytics’ Handset Component Technologies (HCT) service report.

The global smartphone AP market grew 21 percent year-on-year to $6.8 billion in Q1 2021. Strategy Analytics’ research report “Smartphone Apps Processor Market Share Tracker Q1 2021: Qualcomm and MediaTek Capitalise on HiSilicon’s Challenges” estimates that Qualcomm, MediaTek, Apple, Samsung LSI and HiSilicon captured the top-five revenue share rankings in the smartphone applications processor (AP) market in Q1 2021.

• Qualcomm led the smartphone AP market with a 40 percent revenue share, followed by MediaTek with 26 percent and Apple with 20 percent.
• 5G APs accounted for 41 percent of total smartphone APs shipped in Q1 2021. Entry-level 5G APs such as Snapdragon 480 and Dimensity 700 will help smartphone manufacturers bring 5G to lower price tiers in 2021.

Sravan Kundojjala, author of the report and Associate Director of Handset Component Technologies service at Strategy Analytics, commented, “The trade war reshaped the global smartphone AP market in Q1 2021. Both Qualcomm and MediaTek made the most of HiSilicon’s forced exit from the smartphone AP market due to trade restrictions. Both companies enjoyed a double-digit shipment growth in Q1 2021 and gained market share with their 4G and 5G APs. HiSilicon’s smartphone AP shipments declined 88 percent in Q1 2021, per Strategy Analytics’ estimates. It remains to be seen whether Huawei will spin-off HiSilicon’s smartphone chip business to ensure its future.”

Mr. Kundojjala continued, “Apple, Samsung LSI and Unisoc also saw shipment and revenue growth in Q1 2021. The growth momentum will continue through 2021, driven by an increased mix of 5G-attached APs and post-pandemic demand. Strategy Analytics, however, cautions that smartphone AP vendors need to maintain healthy average selling prices (ASPs) and optimise their cost structure in light of increasing chip development costs and foundry capacity constraints.”

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Service Name: Handset Component Technologies

Contacts

Report contacts:
European Contact: Stephen Entwistle, +44 (0)1908 423 636, sentwistle@strategyanalytics.com
US Contact: Christopher Taylor, +1 617 614 0706, cataylor@strategyanalytics.com
Asia Contact: Sravan Kundojjala, +44(0) 1908 423 638, skundojjala@strategyanalytics.com