The global smartphone applications processor (AP) market grew 18 percent year-on-year to $7 billion in Q2 2021 despite capacity constraints, says Strategy Analytics.
Qualcomm led the smartphone AP market with a 36 percent revenue share, followed by MediaTek with 29 percent and Apple with 21 percent.
After leading the smartphone AP market in both unit and revenue terms in 2020, Qualcomm continued this momentum in 1H 2021.
5G AP shipments grew 140 percent year-on-year, driving an 8 percent growth in average selling prices (ASPs).
TSMC and Samsung Foundry manufactured almost 100 percent of smartphone APs shipped in Q2 2021. In addition, 5 nm-based APs accounted for approximately 20 percent of all smartphone APs shipped during the second quarter.
Qualcomm and MediaTek leveraged their scale and long-term foundry relationships to post robust shipment growth in Q2 2021. Qualcomm’s smartphone AP revenue growth outpaced its shipment growth, driven by a high mix of 5G APs. 5G APs accounted for 54 percent of Qualcomm’s smartphone AP shipments in Q2 2021. Qualcomm shifted focus to premium and high tier APs to make the best use of available capacity.
MediaTek and Unisoc posted triple-digit growth in their smartphone AP revenues in Q2 2021, driven by increased traction at China-based smartphone OEMs.
MediaTek and Unisoc gained market in 4G APs as the market leader Qualcomm shifted focus to 5G APs. Unisoc and MediaTek have a proven track record in capturing long-tail demand in mature technologies.