On the morning of April 16, the latest research report of Strategy Analytics mobile phone component technology research service “Q4 Baseband Market Share Tracking in 2019: 5G Baseband Chip Captures Double-digit Revenue Share” pointed out that the global cellular baseband processor market revenue in 2019 was US $ 20.9 billion, a 3% year-on-year decline.
The research report pointed out that Qualcomm, HiSilicon, Intel, Media Tek and Samsung LSI accounted for the top five revenue share of the global cellular baseband processor market in 2019. Qualcomm leads with a revenue share of 41%, followed by HiSilicon with 16% and Intel with 14%.
5G baseband chip shipments received a lot of attention in the first year. Due to the high average selling price (ASP), it accounted for nearly 2% of total baseband shipments, while gaining an 8% revenue share.
HiSilicon, Qualcomm and Samsung LSI are the key 5G baseband suppliers in 2019, winning major customer orders.
Strategy Analytics believes that 5G will become a bright spot during the COVID-19 epidemic; as mobile phone OEMs will prioritize 5G over 4G when launching new products, this may offset the downward trend. 4G LTE baseband shipments declined for the first time in 2019. With the exception of Intel and Unisoc, LTE shipments of all other major baseband suppliers declined in 2019.
Sravan Kundojjala, Deputy Director of Strategy Analytics, said:”Before Qualcomm expanded its leading position in late 2019, three different market leaders emerged in the first year of the 5G baseband chip market.”
Strategy Analytics estimates that in 2019, Qualcomm will account for 53% of the 5G baseband chip market. Qualcomm’s market-leading X50 series 5G chips, RF front-end expertise, extensive customer base and early pioneering work have contributed to its leading position in the 5G baseband market. Driven by iPhone 5G orders and the surge of mid-range Android 5G in China and other regions, Qualcomm is expected to gain a larger share of 5G in 2020.”
Stuart Robinson, Executive Director of Mobile Phone Technology Research Services at Strategy Analytics, said: “Media Tek is showing signs of recovery and has increased its share of LTE baseband chips by 2019. Media Tek has won multiple high-volume LTE baseband chip orders against OPPO, vivo and Xiaomi with its new Helio P chip. Despite Media Tek’s mistakes in 4G LTE, it is surprising that Media Tek seems to have fully prepared for 5G with its Dimensity brand 5G SoC. Unisoc continues to recover. It is the world’s third largest baseband supplier in terms of unit shipments, and achieved strong growth in 2G and 4G baseband chip shipments in 2019. With the market leader shifting to 5G, Unisoc is in a favorable position to obtain the demand for 4G LTE.”
Christopher Taylor, Director of RF and Wireless Component Research Services at Strategy Analytics, added:”Intel’s LTE baseband chip shipments increased by 74% in 2019, driven by Apple’s winning customer orders. Apple completed the baseband for Intel’s 5G smartphones in late 2019. The acquisition of the chip business now joins the competition with vertical baseband suppliers HiSilicon (Huawei) and Samsung LSI. Both HiSilicon and Samsung LSI are strong in the 5G baseband chip market in 2019. However, Apple will take three to four years before deploying its own 5G baseband on the iPhone. Apple may try non-iPhone 5G devices in the next two years. “