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5G and 5 nm APs Drive Growth
BOSTON–(BUSINESS WIRE)–For the first time since 2016, the global smartphone applications processor (AP) market returned to revenue growth in 2020, according to Strategy Analytics’ Handset Component Technologies (HCT) service report.
Despite the COVID-19 pandemic, the global smartphone AP market showed resiliency and grew 25 percent year-on-year to $25 billion in 2020. Strategy Analytics’ research report “Smartphone Apps Processor Market Share Tracker Q4 2020: 5G and 5 nm APs Drive Growth” estimates that Qualcomm, Apple, HiSilicon, MediaTek and Samsung LSI grabbed the top-five revenue share rankings in the highly dynamic global smartphone applications processor (AP) market in 2020.
Sravan Kundojjala, Associate Director at Strategy Analytics, commented, “Notwithstanding the COVID-19 pandemic, trade war and shortages, the smartphone AP market posted all-time high revenue in 2020. Increased shipments of higher-priced 5G and 5 nm AP shipments contributed to this growth. Strategy Analytics believes that on-going semiconductor shortages point to strong underlying demand. However, an increased mix of mid-range and low-end 5G APs from Qualcomm, MediaTek, Samsung LSI and Unisoc will inevitably pressure smartphone AP average selling prices (ASP) in 2021. AP Vendors need to adjust their cost structures to continue to benefit from the 5G wave.”
Stephen Entwistle, Vice President of the Strategy Analytics Strategic Technologies Practice, added, “The US-China trade war affected HiSilicon in 2020. HiSilicon saw its smartphone AP shipments drop 20 percent in 2020. Strategy Analytics predicts that Apple, MediaTek, Qualcomm and Samsung LSI will capture the market share left by HiSilicon in 2021. We believe Qualcomm is well-situated to capture HiSilicon’s premium-tier share with its Snapdragon 888 and 870 offerings.”
About Strategy Analytics
Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.
Source: Strategy Analytics, Inc.
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For more information about Strategy Analytics
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
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