The global cellular baseband processor market grew 9% year-over-year to reach US$5.2 billion in the first quarter of 2020, according to Strategy Analytics Handset Component Technologies service report, “Baseband Market Share Tracker Q1 2020: 5G Drives Baseband Revenue Growth .”
The research shows Qualcomm, HiSilicon, MediaTek, Intel and Samsung LSI featured in the top-five cellular baseband processor revenue share rankings in quarter one [Q1] 2020. Qualcomm maintained its baseband market share leadership with 42% revenue share in Q1 2020 followed by HiSilicon with 20 percent and MediaTek with 14%. The report also showed:
° The COVID-19 pandemic coupled with weak seasonal demand affected baseband shipments in Q1 2020. However, 5G baseband shipments powered the baseband market to revenue growth as 5G basebands command a significant premium over 4G basebands.
° 5G baseband shipments accounted for almost 10% of total baseband shipments in Q1 2020 but captured up to 30% of total baseband revenues.
° 4G baseband shipments declined for the seventh consecutive quarter in Q1 2020 as device vendors continue to prioritize 5G over 4G. Despite the decline, the 4G segment continues to represent an attractive volume opportunity for baseband vendors.
“In Q1 2020, Qualcomm solidified its 5G market share leadership with its second-generation 5G products including the X55 slim modem and Snapdragon 765/G 5G SoCs,” Sravan Kundojjala, associate director, Strategy Analytics, says. “Strategy Analytics estimates that Qualcomm shipped more 5G basebands in Q1 2020 than the company shipped in all of 2019, driven by significant flagship and mid-range 5G launches by its customers including Samsung, Xiaomi, Oppo, Vivo and Others. Despite the pandemic, Qualcomm managed to post revenue growth in its baseband business, thanks to high average selling prices for 5G chips.