Telecom Lead Asia: Intel’s new Atom processor platform for low-end smartphones in emerging mobile markets could allow the chip major to expand its currently minimal market share.
Intel’s new processor platform unveiled at CES 2013 is aimed at developing regions of the world, where consumers are demanding low-cost smartphones that deliver high performance and a full feature set.
Francis Sideco, senior principal analyst for wireless communications at HIS, said: “With Intel now holding a negligible share of the global smartphone applications processor market, the company appears to be taking the steps it needs to in order to have a chance at expanding its presence in this segment.”
Low-end smartphone shipments are expected to double to 559 million in 2016 from 206 million in 2012.
Shipments of low-end smartphones will rise at a compound annual growth rate (CAGR) of 51 percent from 2011 to 2016.
In contrast, high-end smart shipments will grow at a CAGR of 12 percent during the same period.
| Top-5 Company Market Share Among Suppliers of Mobile Handset Baseband ICs (Analog and Digital) (Share of Global Revenue) |
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| Q3-12 Rank | Company Name | Percent of Total |
| 1 | Qualcomm | 52.3% |
| 2 | MediaTek | 14.9% |
| 3 | Intel | 8.4% |
| 4 | Broadcom | 5.6% |
| 5 | STMicroelectronics | 5.3% |
| Top 5 Companies | 86.6% | |
| All Others | 13.4% | |
| Source: IHS iSuppli Research, January 2013 | ||
Shipments of all kinds of cellphones in China are expected to rise at a CAGR of 8 percent for the same five-year period, making it the world’s fastest growing region.
The next fastest-growing area will be the rest of the Asia-Pacific countries, which will rise at a 6 percent CAGR.
Coming in third is the combined Eastern Europe, Africa and Middle East region, with 5 percent growth. In comparison, the well-established North American region will grow only 4 percent.
For the overall market for baseband chips governing all kinds of cellphones, Intel ranks third, behind Qualcomm and MediaTek of Taiwan. Intel held an 8.4 percent share of global revenue for cellphone basebands in the third quarter of 2012, the most recent period for which figures are available. However, Intel’s portion of the market represented only a sliver of the 52.0 percent share held by market leader Qualcomm.
