Global Smartphone AP-SoC Market Share: Quarterly

Global Smartphone AP (Application Processor) Shipments Market Share: Q1 2022 to Q2 2023

Published Date: September 7, 2023

A repository of quarterly data for the global smartphone AP market based on smartphone AP/SoC shipment numbers.

This data is based on the smartphone AP/SoC shipments

Note: Totals may not add up due to rounding

Global Smartphone Chipset Market Share (Q1 2022 – Q2 2023)
Brands	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
Mediatek	36%	36%	35%	33%	33%	30%
Qualcomm	34%	32%	32%	19%	27%	29%
Apple	14%	13%	16%	28%	26%	19%
UNISOC	11%	11%	9%	11%	8%	15%
Samsung	5%	8%	8%	8%	4%	7%
HiSilicon (Huawei)	1%	0%	0%	0%	0%	0%
Others	0%	0%	1%	1%	1%	1%

Source: Global Smartphone AP-SoC Shipments & Forecast Tracker by Model – Q2 2023

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Highlights:

Apple’s sales declined in Q2 2023 due to seasonality. Its Pro series did better.

MediaTek’s shipments increased slightly in Q2 2023 with reduced inventory levels and growing competition in the entry-level 5G smartphone market. New smartphone launches in the low-to-mid-end segments increased the shipments of Dimensity 6000 and Dimensity 7000 series. The Dimensity 9200 Plus was added to the premium tier.

Qualcomm’s shipments increased in Q2 2023 due to the Snapdragon 8 Gen 2’s adoption in Samsung’s flagship smartphones and by Chinese OEMs. The launch of Samsung’s Flip and Fold series also contributed to this growth. Qualcomm refreshed the Snapdragon 7 Gen 1, Snapdragon 6 Gen 1 and Snapdragon 4 Gen 1 series to gain some share back. However, the premium segment’s growth remained in focus.

Samsung’s shipments increased in Q2 2023. The Exynos 1330 and 1380’s launch added volumes to the low and mid-high segments.

UNISOC’s shipments grew in Q2 2023 after a weak Q1. It gained some share in the $100-$150 LTE segment. In H2 2023, as entry-level 5G smartphones pick up in regions like LATAM, SEA, MEA and Europe, UNISOC will gain some share.

For a more detailed smartphone AP-SoC shipments & forecast tracker, click below:

Global Smartphone AP-SOC Shipment & Forecast Tracker by Model – Q2 2023

This report tracks the smartphone AP/SoC Shipments by Model for all the vendors. The scope of this report is from the AP/SoC shipments from all the key vendors like Apple, Qualcomm, MediaTek, Huawei, Samsung, UNISOC and JLQ. We have covered all the main models starting from Q1 2020 to Q2 2023. We have also included a one-quarter forecast for Q3E 2023. This report will help you to understand the AP/SoC Market from the shipment perspective. Furthermore, we have also covered key specs for these AP/SoC covering market view by:

Network (4G/5G AP/SoC)
Foundry Details (like TSMC, Samsung. etc.)
Process node (5nm, 6nm, 8nm, etc.)
Manufacturing Process (FinFET, N7, N5, etc.)
CPU Cores Architecture and CPU Cores Count
Modem (External/Internal)
Modem Name
Secure Element Presence
Security Chip
AI Accelerator

For detailed insights on the data, please reach out to us at sales(at)counterpointresearch.com. If you are a member of the press, please contact us at press(at)counterpointresearch.com for any media enquiries.

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Qualcomm Revenue Declines on Demand Weakness Across Handsets, IoT products

Automotive and IoT segments were the bright spots and remained on a growth trajectory.
H1 2023 will see inventory correction with some demand coming back in H2 2023.
The current weakness in the semiconductor industry is more cyclical than structural.

The fabless semiconductor industry has been posting weaker Q4 2022 revenues due to cyclical headwinds, weak global macroeconomic conditions and COVID-19 pandemic. After MediaTek’s muted numbers, Qualcomm has also reported a decline during the quarter. QCT’s (Qualcomm CDMA Technologies’) revenues declined 11% YoY in Q4 2022 (Q1 in Qualcomm’s FY2023) to $7.9 billion while QTL’s (Qualcomm Technology Licensing’s) revenues declined 16% to $1.5 billion due to weak handset sales. The automotive segment grew 58% YoY to $456 million driven by the Snapdragon digital chassis.

The outlook for H1 2023 remains weak, almost in line with MediaTek’s view. Inventory drawdown will happen in Q1 2023 and Q2 2023. Also, according to Counterpoint, the smartphone market will see flat growth on an annual basis. But the momentum is expected to come back in H2 2023 with inventory restocking and China reopening. To maintain healthy growth margins, we expect pricing discipline and an increase in the cost of new chipsets.

Sources: Qualcomm, Counterpoint Semiconductor Tracker

October-December quarter analysis

In Q4 2022, Qualcomm’s revenues declined 12% YoY to reach $9.5 billion.
QCT’s chipset revenues declined 11% YoY to $7.9 billion and QTL’s licensing revenues declined 16% to $1.5 billion due to weak handset sales.
Within QCT, handset revenues declined 18% YoY to $5.7 billion. From Q4 onwards, RFFE revenues are being accounted for within each sub-segment. Qualcomm’s share in the Samsung Galaxy S23 series has grown from 75% to 100%. Overall, the higher inventory is affecting the handset business revenue.
IoT revenues grew in single digits (7%) because of Edge Networking from the Wi-Fi access points and gateway routers.
The automotive segment grew 58% annually to $456 million driven by the Snapdragon digital chassis.
According to our RFFE report, Qualcomm’s RFFE revenues declined 18% YoY in Q4 2022. Handsets captured a dominant share in RFFE revenues. Qualcomm, which is already a leader in smartphone RFFE, has so far designed a win pipeline of over $900 million in the automotive segment and $405 million in revenues in the IoT segment.

Outlook

According to the Counterpoint Market Outlook service, the smartphone market will be flat YoY in 2023. H1 2023 will see inventory correction while some demand will come back in H2 2023. We forecast excess smartphone AP/SoC inventory to return to normal levels by the end of H2 2023.
FWA continues to have a big potential in driving IoT revenues, aided by both Sub-6GHz and mmWave. In India, Jio has publicly stated it will cover 100 million homes. Qualcomm is an investor in Jio and will gain from the modem and Wi-Fi-based content in 5G FWA.
In 2021, Qualcomm acquired NUVIA, which enables custom CPU and design. Qualcomm has developed custom Oryon CPUs on ARM. This will further drive growth. We expect Arm-based laptops to have a 25% market share in five years.
Further migration to Wi-Fi 6/6E, Wi-Fi 7, mesh networks and smart utility meters, trackers, e-mobility, parking meters, home automation and security, and other location-based solutions in the industrial sector is a key revenue driver.
Qualcomm guided 2023 revenues in the range of $8.7 billion to $9.5 billion and non-GAAP EPS of $2.05 to $2.25. Their midpoint guidance includes an assumption of lower-end market demand and continued drawdown of channel.

The current weakness in the semiconductor industry is more cyclical than structural. We expect H1 2023 to be weak. With China opening up and inventory drawing down, H2 2023 will see some growth coming back to the market as OEMs start restocking and preparing for flagship launches. Also, on top of premium chipsets, there is an opportunity for Qualcomm in the low-mid AP/SoC which has been affected more than the premium segment. Qualcomm will try to get some share back from MediaTek in the low-mid segment.

Qualcomm Delivers Record Revenues Amid Challenging Macro Environment

Growth comes in a year that is seeing multiple macroeconomic headwinds.
With its big win at Samsung, Qualcomm’s share in the Galaxy S flagship for 2023 will grow to 100%.
Qualcomm has extended its license with Apple. It will now supply most of the modems to iPhones in 2023.
H1 2023 will be weak, but Qualcomm has strong fundamentals for long-term growth.

Qualcomm has reported record revenues for its July-September quarter, which is also the last quarter of its financial year. The top line grew 22% YoY to $11.4 billion. This growth comes in a year that is seeing multiple macroeconomic headwinds, with most semiconductor companies struggling with weakening consumer sentiment. Qualcomm has been somewhat immune to this due to its growing business diversification beyond smartphones, like in IoT (FWA, Windows on Snapdragon, industrial IoT and Connected edge) and automotive. Within smartphones as well, Qualcomm’s strategy to focus on the premium 5G segment and increase the share of semiconductor content from SoC to RFFE has helped the company register some growth even though the overall smartphone demand has been softening.

The outlook for the next financial year remains weak due to the ongoing macroeconomic turbulence, prolonged Russia-Ukraine war, energy crisis, rising inflation, China’s COVID-19 restrictions and market exiting with higher-than-normal channel inventories. As a result, despite a strong performance, Qualcomm, going forward, is focusing on prudently managing operating expenses, freezing hiring, reducing expenditure in matured product areas and optimizing selling, general and administrative expenses (SG&A) for targeted R&D investment in growth areas such as automotive and IoT.

Sources: Qualcomm, Counterpoint Semiconductor Tracker

July-September Quarter Analysis:

In Q3 CY2022, Qualcomm’s recorded revenues grew 22% YoY to reach $11.4 billion.
QCT (chipset) business revenue increased 28% YoY to an all-time high of $9.9 billion, while QTL (licensing) business revenue declined 8% YoY to $1.4 billion due to weaker smartphone unit sales resulting in lesser royalties.
Within QCT, handset segment revenues reached $6.6 billion, growing 40% YoY. Handsets contributed around 66% of the total QCT revenues. The smartphone SoC shipments were driven by strong adoption of the flagship Snapdragon 8 Gen 1 and Snapdragon 778G series in the premium and high-end segments respectively.
IoT revenues were up 24% YoY to reach $1.9 billion in Q3 CY2022 driven by edge networking and industrial IoT. Qualcomm signed a multi-year agreement with Meta for AR/VR on Snapdragon chipsets. Meta’s Quest Pro has three chipsets from Qualcomm – Snapdragon XR 2+ in the headset and two Snapdragon 662 in the controllers. This is a significant win in the Meta Quest Pro Bill of Materials (BoM)
Strong traction from the Wi-Fi 6/6E solution, next-gen Wi-Fi 7 solution, 5G FWA and Windows on Snapdragon, Robotics, and edge processing will drive the overall IoT revenues going forward.
Auto revenues reached $0.4 billion, growing 58% YoY driven by Snapdragon Digital Chassis. Qualcomm has an auto design win pipeline across connectivity, digital cockpit and ADAS worth over $30 billion. This shows Qualcomm’s diversification is working and will be a big revenue stream going forward.
RFFE revenues declined 20% YoY to reach $992 million due to the continued weakness of the handset market and channel inventory. According to Counterpoint’s Smartphone RFFE Revenue Tracker, the 2022 growth forecast for the smartphone RFFE market has been revised to the low single-digit range (1%~3%) to reflect the greater-than-expected impact on demand for RFFE components. Qualcomm, which is already a leader in smartphone RFFE, has designed a win pipeline of greater than $900 million in auto and $405 million in revenues within IoT.

Outlook

In the lucrative 5G discrete baseband modem business, Qualcomm has extended its license with Apple and will be supplying most of the modems to new iPhones launching in 2023 with sales continuing through 2024.
Beyond 2024, the contribution from Apple will be subject to how successful Apple is in building its first baseband capability, either integrated within SoC or discrete. So far, it has been a struggle to build its first in-house modem capabilities.
Another big win is with Samsung as the share of Qualcomm solutions within the Galaxy S series flagship for 2023 will grow to 100% from 75% in the Galaxy S22. The fact that the world’s leading and vertically integrated Android vendor has chosen Qualcomm’s Snapdragon flagship SoC for its flagship models, from the S series to foldable, shows how Qualcomm is dominating the premium smartphone segment with its SoC capabilities.
As we have highlighted before, it is difficult to develop an end-to-end smartphone solution from SoC to RFFE. Qualcomm, with its forward integration capabilities, is the only game in town when it comes to high-to-premium-tier solutions. The entry of MediaTek’s 9200 will ignite some competition but the performance and capabilities remain to be seen as Qualcomm is generations ahead when it comes to AI, camera, 5G baseband, RFFE and so forth.
Qualcomm’s guidance for Q4 CY2022 forecasts $9.2 billion to $10 billion revenue, non-GAAP EPS of $2.25 to $2.45, QCT revenues at $7.7 billion to $8.3 billion and EBT margins of 26% to 28%, and QTL revenues of $1.45 billion to $1.65 billion. Both the handset and IoT revenue streams are expected to be down sequentially.
There is 8-10 weeks of elevated inventory in the channel, which will take a couple of quarters to come down. Qualcomm also pointed out inventory correction in the premium segment as well as smartphone OEMs undergoing correction. But the overall impact of the Samsung Galaxy S series win will not be significant as China’s market remains weak.
Qualcomm’s financial year has been impacted by macroeconomic headwinds and extended China COVID-19 restrictions. This has resulted in demand weakness and temporarily elevated channel inventory across the industry.

Overall, the inventory correction will take two quarters. H1 2023 will be weak, something that has also been pointed out by other semiconductor vendors. A cautious approach is needed for CY2023 due to the weak macroeconomic situation, which is more of a cyclical adjustment. Qualcomm has strong fundamentals for long-term growth. Its design wins are growing for both the auto and IoT segments. The diversification strategy will help the company drive long-term growth

Despite macroeconomic headwinds, Qualcomm delivers a large quarter

Despite macroeconomic headwinds and investors’ angst with a declining smartphone market, Qualcomm reported great quarterly results. Qualcomm was aided by its one technology roadmap which connects the intelligent edge, even during a weak smartphone market. There were two major stories of the quarter. First, despite a shrinking smartphone market, which Counterpoint Research Market Outlook predicts will decline by 3% in 2022, Qualcomm’s handset business grew a whopping 59% YoY. Despite weakness in the low and mid-tier smartphone market written often about within Counterpoint Research, Qualcomm benefitted from its focus on the high-tier and a favourable mix of handset chips.

The second large story of the quarter was that Samsung and Qualcomm inked a licensing agreement through 2030 and the 6G era. Qualcomm will power future Galaxy devices with high-end Snapdragons within smartphones, PCs, tablets, and XR. Qualcomm’s percentage of Galaxy devices will likely continue to grow. Note that Qualcomm is currently designed into about 75% of the Galaxy S22 family. Qualcomm specifically highlighted that the same royalty terms are in place. This means it is highly likely other OEMs will agree to the same royalty terms upon renewal. Huge win for Qualcomm.

Source: Qualcomm Investor Relations

Other highlights from the quarter:

The design wins within automotive continue. Its digital chassis solutions revenue pipeline increased to $19 billion, up $3 billion YoY. Its latest design win is CARIAD, Volkswagen Group’s software company. CARIAD will use Qualcomm’s system-on-chips (SoCs) to enable its assisted and automated driving functions up to Level 4. This solution delivers 700 TOPs (trillions of operations per second).
IoT revenues grew 31% YoY driven by edge networking and industrial IoT with combined revenue growth of more than 40%. Qualcomm will profit from the growth of Windows on Snapdragon and ARM-based computing. There are over 225 enterprise companies, more than 100 ISVs, and over 15 channel partners supporting the Snapdragon compute platform. Price points and performance continue to expand the value proposition. Further edge networking, Wi-Fi 7, and the robotics platform will be a key segment for growth for IoT.
Qualcomm recently announced a new wearables platform, which saw a large leap in specs. Briefly, it is built on a 4nm process, 50% lower power consumption, 2x performance, and 30% smaller size. This redesign will push more processing to the co-processor. The power upgrade vastly helps kids/senior watch space. 4nm & performance will enable new sensors and the high-end. This will vastly help the smartwatch space allowing for better tracking (think kids/seniors), better health monitoring, and new applications in development. It remains a hurdle that too often the smartwatch is on the charger and not collecting data on the wrist. Qualcomm’s solution will greatly help this. OEMs will be able to scale with two platform options. There are 25 design wins and growing.
RFFE grew 9% on an annual basis and will be a key part of Qualcomm’s diversification strategy. A large share of the Qualcomm RFFE is driven by smartphones. As per Counterpoint’s Smartphone RFFE Revenue report, Qualcomm led the smartphone RFFE market with 23.5% in Q1 2022. Qualcomm has a complete modem-to-antenna solution for 5G thereby supplying the end-to-end needs of smartphone OEMs. In the coming years, RRFE growth will come from Auto and IoT. The current RFFE design pipeline for the automotive segment is around $900 million. Also, in IoT, there is an opportunity for next-generation Wi-Fi (Wi-Fi 7) and Bluetooth for RFFE modules. The ASP growth in RFFE content from mid-end to premium smartphones is less when compared to mid-end and premium smartphone chipsets.
There were limited comments about Qualcomm’s move into open, virtualized 5G RAN. However, the company recently announced partnerships with Hewlett Packard offering a next-gen 5G virtual DU solution. Qualcomm’s differentiation is lower power requirements, which the company explains are 60% lower for operators. The move to open RAN will likely be a rolling change with potentially more of a shift during the 6G transition.
Qualcomm guided Q3 2022 revenues in the range of $11 billion to $11.8 billion driven by the Auto and IoT segment in QCT. Considering the global macro-economic conditions and the slowdown in consumer product purchases, Qualcomm’s forecast for the handset has been reduced to mid-single digits. Qualcomm can mitigate revenue declines if the premium segment performs much better than the low and mid-tiers.

Revenue growth this quarter was driven by the handsets due to a higher premium mix, automotive was driven by the digital cockpit solution, and demand in edge networking and industrial IoT in the IoT segment. Looking at the second half of 2022, handsets may be affected by slowing consumer demand, similar to some applications in consumer IoT. But, automotive and IoT (industrial and edge) will continue to drive growth.

TSMC Captures 70% Share of the Smartphone AP/SoC and Baseband Shipments in Q1 2022

New Delhi, London, Hong Kong, San Diego, Seoul – July 6, 2022

Global smartphone chipset (SoC/AP+Baseband) shipment declined 5% YoY in Q1 2022 due to seasonality, weaker demand in China amid lockdowns and over shipping from some chipset vendors in Q4 2021, according to the Counterpoint’s Foundry and Chipset Tracker. However, this decline was offset by strong growth in the chipset revenues which grew a healthy 23% YoY in Q1 2022, as the chipset mix shifted towards costlier 5G smartphones. TSMC, the world’s largest foundry, captured nearly 70% share of manufacturing the key chipsets going into the smartphones from the complete System-on-Chip (SoC) to discrete Application Processors (AP) and cellular modems. Samsung Foundry was the second-largest foundry behind TSMC capturing a 30% share of the global smartphone chipsets.

Source: Counterpoint’s Foundry and AP/SoC service

Note: Total shipments include the AP/SoC and discrete baseband

Commenting on the foundry landscape for smartphone segment, Senior Research Analyst, Parv Sharma, said, “Foundries are extremely high CAPEX, cutting-edge technology businesses which have led to a duopoly for manufacturing advanced chipsets for smartphones. TSMC and Samsung Foundry together control the entire smartphone chipset market and TSMC is more than double Samsung in terms of manufacturing scale and market share. TSMC CAPEX spending is much higher than the competitors. It will invest $100 billion between 2021-2023 in 5/4nm and 3nm chip fabrication facilities, WFE, 3D packaging, and ramp up for 5/4nm and 28nm to meet the growing demand. Thus enabling TSMC to capture a large share in the advanced nodes.

TSMC based smartphone chipsets declined 9% annually in Q1 2022. Due to Qualcomm choosing Samsung Foundry for manufacturing X60 baseband and annual decline in the MediaTek smartphone chipset shipments. However, Qualcomm dual sourcing strategy will add more volumes towards TSMC in 2022. Also the ramp-up of the 4nm flagships from Qualcomm, Apple and MediaTek will enable TSMC to further gain share in smartphone chipsets in 2022.

Of the total smartphone chipsets on advanced nodes (4nm, 5nm, 6nm and 7nm), TSMC captured 65%. TSMC entered mass production for its leading 4nm process node with MediaTek’s Dimensity 9000 SoC in Q1 2022. TSMC’s 4nm node-based smartphone chipset shipments are expected to grow further thanks to Qualcomm’s dual sourcing strategy for its future 4nm based Snapdragon 8+ Gen 1 SoC.”

Source: Counterpoint’s Foundry and AP/SoC service

Commenting on Samsung Foundry’s performance, Senior Analyst Jene Park, said, “Samsung Foundry captured around 30% share of the global smartphone chipset shipments thanks to Qualcomm and Samsung Semiconductor’s internal Exynos chipset division. Despite relatively lower yield rates for the leading 4nm process node, Samsung Foundry led the leading nodes (4nm & 5nm) smartphone chipset shipments with a healthy 60% share followed by TSMC which captured a 40% share in Q1 2022. The 4nm shipments at Samsung Foundry were driven by Qualcomm Snapdragon 8 Gen 1 which has gained more than 75% share in the Samsung Galaxy S22 series in just one quarter. Samsung Foundry also benefitted from refreshed mid-tier 5nm based 5G chipset Exynos 1280 for its higher volume Galaxy A53 and A33 smartphones.

However, the uncertain global macroeconomic climate, potential inventory corrections and dual-sourcing from Qualcomm could put pressure on Samsung Foundry’s market share overall as well as leading nodes.”

Full report

Global Smartphone AP-SOC Revenue & Forecast Tracker by Model – Q1 2022

here.

Contacts:

Parv Sharma

Jene Park

Dale Gai

Follow Counterpoint Research
press(at)counterpointresearch.com

Qualcomm Captures 44% of the Smartphone AP/SoC and Baseband Revenues in Q1 2022

New Delhi, London, Hong Kong, Beijing, San Diego, Denver, Seoul, Buenos Aires – June 7, 2022

Driven by the global premium and mid-tier 5G portfolio, global smartphone AP (Application Processor)/SoC (System on Chip) chipset and baseband revenues grew 23% YoY in Q1 2022, according to the latest research from Counterpoint’s Foundry and AP/SoC service. In Q1 2022, 5G AP/SoC and baseband revenues grew 36% compared to the same period a year ago.

Source: Counterpoint’s Foundry and AP/SoC service

Note: Total revenues include revenues generated from the AP/SoC and discrete baseband

Research Director Dale Gai said, “Qualcomm leads the smartphone AP/SoC and baseband revenues with 44% share. The revenue reached $6.3 billion for Qualcomm, growing 56% YoY in Q1 2022, driven by the higher premium mix which has led to growth in the ASPs. Qualcomm is also providing the discrete baseband shipments to Apple and Qualcomm’s own AP’s, which contribute to around a quarter of Qualcomm’s smartphone AP/SoC and baseband revenues.”

Commenting on the growth in MediaTek’s performance, Senior Analyst Parv Sharma said, “MediaTek’s revenues grew 29% YoY in Q1 2022, reaching a 19% share in global AP/SoC and baseband revenues. MediaTek has dominated the volume shipments for 5G mid-tier smartphones and 4G smartphones. The penetration of 5G is growing continuously and this is helping drive higher revenues for MediaTek. It has also entered the premium 5G segment for the first time with its Dimensity 9000, and this chip, together with the Dimensity 8000, has added impetus to its overall revenues.”

Summary:

Qualcomm: Qualcomm leads the smartphone AP/SoC and baseband revenues with a 44% share. Qualcomm’s revenue grew by 56% YoY in Q1 2022 driven by the higher premium mix which has led to growth in the ASPs. Around a quarter of Qualcomm’s smartphone AP/SoC and baseband revenues are derived from its sales of discrete basebands.

MediaTek: MediaTek captured a 19% share of the total global smartphone AP/SoC and baseband revenues. The AP/SoC and baseband revenues for MediaTek grew 29% YoY in Q1 2022. Driven by the higher 5G ASP and entry into the premium tier with its Dimensity 9000 series.

Apple: With consistent healthy demand for the premium iPhone 13 series, Apple captured the second position with a 26% share. Apple uses Qualcomm’s discrete basebands for 5G connectivity in the iPhone 12 and iPhone 13 series.

Samsung Exynos: Samsung captured fourth position with a 7% share in the AP/SoC and baseband revenues in Q1 2022. Samsung revenue also grew sequentially. Samsung’s shipment volume increased in Q1 2022 due to the launch of Exynos 1280. Samsung launched the Galaxy A33 and A53 with its Exynos 1280 SoCs. However, despite some positive indicators, Samsung Exynos’ share declined in Q1 2022 due to losing share to Qualcomm in the flagship Galaxy S22 series smartphones and due to the low yields of the 4nm premium Exynos chipsets.

UNISOC: UNISOC captured 3% of the overall AP/SoC and baseband revenues. A larger part of the revenues is driven by its 4G AP/SoCs, which have grown significantly over the past years. The share of UNISOC AP/SoC shipments reached 11% in Q1 2022. It has gained share as other chipset providers have focused less on the 4G LTE AP/SoCs creating a shortage of supply that UNISOC took advantage of to win new customers and market share. UNISOC was able to expand its customer base with design wins with realme, HONOR, Motorola, Samsung, ZTE and TECNO all launching phones with UNISOC’s Tiger series of chipsets.

HiSilicon: Affected by the US trade ban, Huawei was unable to manufacture the HiSilicon Kirin chipsets. The accumulated inventory of Kirin SoCs is on the verge of being exhausted. The overall revenues have declined from 8% in Q1 2021 to 1% in Q1 2022.

Please click here to view the full report.

For our comprehensive research on foundry to chipsets to devices, feel free to get in touch with us at the contacts given below.

Analyst Contacts:

Parv Sharma

Dale Gai

Follow Counterpoint Research
press@counterpointresearch.com

Qualcomm’s Premium Portfolio Leads Record Revenues in Handsets

After some big gains in 2021, the semiconductor space has seen volatility recently thanks to war, inflation, growing inventory in some segments and shortages in others. However, Qualcomm had a very strong Q1 2022, its third consecutive quarter to see record revenues, including in its handset segment. All business units grew between 28% and 61%.

Qualcomm’s strategy to diversify from being a handset communications company to a connected processor company servicing the connected edge continues to move forward. The company reiterates that its “one technology” road map can expand its total addressable market by seven times. Despite a blowout quarter of its handset business, Qualcomm’s other business units contributed 34% of its Q1 2022 revenues.

Source: Qualcomm Investor Relations

Some key highlights from the quarter:

The handset business grew 56% YoY to $6.3 billion — tremendous growth despite the headwinds of a sales slowdown and further COVID-19 shutdowns in China. The company acknowledged it saw a slowdown in the low- and mid-price segments. But this was more than offset by very strong premium-tier sales. Supply improved and Qualcomm made flagship design wins with all major Chinese brands. These devices are now hitting the market. It is a feather in Qualcomm’s cap that Samsung has increased the variants of its Galaxy S22 line-up powered by Snapdragon. Qualcomm claims it now drives 75% of the S22 family sales – up from 45% of the S21 family. According to Counterpoint Research’s Global Smartphone AP-SoC Shipments & Forecast Tracker, premium-segment Snapdragon 700 and 800 series contributed to around 57% of the AP/SoC shipments in Q1 2022.

Source: Counterpoint Research’s Global Smartphone AP-SoC Shipments & Forecast Tracker

The IoT business grew 61% YoY and reached $1.7 billion with growth coming from all three segments — consumer, edge networking and industrial.
- In the consumer segment, IoT adoption in the high-end Android tablets and demand from entry-level to premium tiers, like the adoption of the Qualcomm 8 Gen 1 by the Samsung Galaxy S8 series and OEMs like Lenovo, HP and Opel, pushed the shipments. Also, some momentum came from Windows on ARM adoption in the Qualcomm 8CX Gen3-powered Lenovo ThinkPad X13S. The adoption of the NUVIA team’s new CPU designs is expected to be implemented in late 2023. This will enable more powerful, always-connected PC designs.
- The edge networking and industrial segments are being driven by the migration to Wi-Fi 6 and 6E mesh technologies. 5G Fixed Wireless Access (FWA) is another segment that is gaining momentum. According to Counterpoint Research’s latest Global FWA+CPE Forecast, 2019-2030, H1 2021, FWA will have a 36% share of the global fixed broadband subscriptions by 2030. Qualcomm’s 5G FWA solution has 125 designs announced or in development by more than 40 OEMs. The industrial segment growth is being driven by connectivity and advanced processing at the edge in applications like ruggedized handhelds, robotics and hospital handhelds. Qualcomm has also announced its Wi-Fi 7 solutions to drive the next growth opportunity for connectivity.

The automotive business grew 41% YoY and reached $339 million driven by the adoption of the Snapdragon digital chassis. Digital chassis includes solutions like telematics, connectivity, digital cockpit, ADAS, and autonomy and cloud services. It will be the key revenue segment going forward, with the design win pipeline now exceeding $16 billion. Further, the incorporation of Arriver’s computer vision, drive policy and driver assistance assets into the Snapdragon Ride Platform will enable Qualcomm to win more semi content in vehicles. OEMs like BMW and Stellantis are adopting Snapdragon Ride and Snapdragon automotive cockpit platforms in their vehicles.

Source: Qualcomm

The RFFE business grew 28% YoY and reached $1.2 billion driven by the adoption of the 5G modem RFFE advanced features like AI integration, mmWave and Sub6GHz dual connectivity, and 5G Sub6GHz CA for FDD and TDD spectrum. Handsets contribute a significant share in the RFFE business, while expansion in the IoT and automotive segments will drive further growth in the RFFE revenues. Qualcomm is also the dominant player for 5G mmWave RFFE in smartphones, 5G FWA CPE, and more.
Guidance for Q2 2022 sees revenues at $10.5 billion to $11.3 billion, non-GAAP EPS at $2.75 to $2.95, QTL revenues at $1.4 billion to $1.6 billion, EBT margins at 69% to 73%, QCT revenues at $9.1 billion to $9.6 billion and EBT margins at 31% to 33%. On a sequential basis, seasonal decline in the handset and RFFE businesses and mid-single-digit growth in the IoT and automotive businesses are seen. Overall, a weak global macroeconomic situation, slowdown in China, COVID-19 and supply chain issues will impact the handset and PC markets. Also, the shift towards the premium segment will continue to drive revenues for the handset business. Qualcomm is focusing on the high-tier segment for bigger margins and the addition of RF and other categories to gain more content in Android devices.

We expect Qualcomm to benefit from its positioning in the premium segment driven by the revenues from the Snapdragon 700 and 800 series against the backdrop of tough macroeconomic conditions and weak China market. Q3 2022 will see an inflection point driven by premium launches, Apple and RFFE, which are tied to handset revenues. For 2023-2024, automotive, IoT and RFFE will sustain growth. Automotive design wins will take 2-3 years to materialize due to long cycles. Adoption of 5G, digital chassis and autonomy will drive semi content across the automotive segment. Also, RFFE will see growth across IoT and automotive with the adoption of 5G connectivity. Revenues from consumer IoT, like 5G FWA, Windows on ARM and Wi-Fi migration, and enterprise will sustain growth in the coming years.

Global Semiconductor Shortage Likely to Ease Significantly in H2 2022 Despite China Lockdowns

London, Hong Kong, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – April 20, 2022

Global semiconductor chip shortages are likely to continue easing during the second half of 2022 as demand-supply gaps decrease across most components, according to Counterpoint Research’s latest smartphone Component Tracker Report.

These shortages have plagued many industries for the past two years and vendors across the supply chain have spent much effort dealing with uncertainties. Since late 2021, demand-supply gaps have been shrinking, signaling an approaching end to supply tightness across the broader ecosystem.

Inventory levels of 5G-related chipsets including mainstream application processors, power amplifiers and RF transceivers have increased significantly in 2022 Q1, easing the shortage for smartphone components rapidly. Though some exceptions still exist, like older-generation 4G processors as well as power management ICs.

Smartphone Component Shortage Outlook for 2022

Across PCs and laptops, the supply gap for the most important PC components like power management ICs, Wi-Fi and I/O interface IC has narrowed. “We saw OEMs and ODMs continued to accumulate component inventory to cope with uncertainties cropping up from COVID-19 earlier this year.” said research analyst William Li, who focuses on semiconductors and components.

However, Li suggests H1 2022 will see downward shipment revisions, largely due to increasing inventory in the channel and a slowdown in consumer PC momentum. “Coupled with wafer production expansion and continuous supplier diversification, we have witnessed significant improvement in the component supply situation, at least in the first quarter,” observed Li. “The big risk factor moving forward is the lockdowns happening across China right now, especially in and around Shanghai. But if the government can manage the outbreak and help key ecosystem players turn the corner quickly, we believe the broader semiconductor shortage will ease around late Q3 or early Q4.”

“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain. But over the past few months, what we have seen is softening demand intersecting nicely with higher inventories,” observed Dale Gai, director of Counterpoint Research’s semiconductor and components practice. “The issue now isn’t shortages but shock to the system from lockdowns, which is having a domino effect across China at the moment.”

Industry and government alike have been focusing on dealing with the short-term risks associated with unpredictable and sharp production stoppages. Senior analyst Ivan Lam noted, “Holding the line is a priority, especially for local governments, and we have seen how some companies are able to continue operations as closed-loop systems. The supply chain was lucky last year, but this latest COVID wave is a big test the country needs to manage carefully but quickly. It is crunch time now and all eyes are on China.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contact:

William Li

Follow Counterpoint Research
press(at)counterpointresearch.com

Android Smartphone SoC Market: MediaTek Leads in Low-Mid Tiers, Qualcomm in Upper

The global Android smartphone AP (Application Processor)/SoC (System on Chip) sales grew 3.6% YoY in 2021, according to the latest research from Counterpoint’s Global Handset Model Sales Tracker. MediaTek led the Android smartphone SoC market in 2021 with a 46% share, followed by Qualcomm with 35%. Most of the market share growth for MediaTek in 2021 came from the low-mid tier wholesale price segment (sub-$299), driven by strong demand for the Dimensity 700/800 series chipsets.

Qualcomm struggled with a tight supply throughout the year for its mid-tier solutions. The shift in focus away from 4G SoCs also didn’t help. However, in the high value $300+ segment, Qualcomm continued to dominate with its Snapdragon 7 and 8 series. The number of design wins for Qualcomm in the $399+ Android smartphones continued to climb not only for chipsets (AP/SoC) but also for RFFE (RF Front End) components, allowing it to capture a higher BoM (Bill of Materials) share and boost both its top and bottom lines.

AP Chipset Share for Android Smartphones by Price Band (%) in 2021

Qualcomm

With a supply crunch since the previous year, Qualcomm prioritized focus on ramping up supply for its 7 and 8 series Snapdragon chipsets, driving higher revenue and profitability.
Qualcomm is also in a very unique position to further make inroads into the premium Android smartphone market by supplying a leading-edge RFFE portfolio and other components such as ultrasonic fingerprint sensor and quick charge.
Qualcomm continued its domination of the mid-high ($300-$499) smartphone segment in 2021 with a 65% share, up from 53% in 2020. The Snapdragon 870, 720G, 750G and 778G were the key volume-driver chipsets for Qualcomm in this segment.
Qualcomm’s share in smartphones priced above $500 increased from 41% in 2020 to 55% in 2021 owing to the launch of flagships Snapdragon 888 and 8Gen 1.
The Snapdragon 8 series sets an industry benchmark when it comes to delivering premium flagship-grade smartphone experiences. It is the default choice for any smartphone OEM’s flagship series.
Qualcomm is generations ahead of its competition when it comes to premium experiences in a chipset, whether it is compute (CPU, DSP, GPU), AI (NPU), connectivity (4G, 5G sub-6GHz, 5G mmWave, Wi-Fi6/6E), security, or gaming capabilities. Besides, the highly optimized RFFE components are key to delivering advanced connectivity experiences, making it a system-level opportunity for Qualcomm.
Moving forward, dual sourcing of premium solutions from foundry will be the key to alleviating +any concerns over chipset shortages.

MediaTek

MediaTek’s growth came from smartphones priced less than $299 (wholesale price). MediaTek’s growth was driven by both LTE and 5G SoCs across this price band.
The volume in the ≤$99 price band was driven by LTE smartphones, where MediaTek captured a 62% share. LTE SoCs were most affected by the shortages in 2021, both for MediaTek and Qualcomm.
In Android smartphones in the $100-$299 price band, MediaTek dominated the market with a 52% share. This is where the Dimensity 700 and 800 drove the mass-market adoption of 5G smartphones in markets such as China, India and parts of the US and Europe. This allowed brands such as realme, Xiaomi, OPPO and vivo to launch 5G phones at price points below the $200 retail price.
The Dimensity 1100/1200 helped MediaTek increase share in the $300-$499 price band, where it captured a 24% volume share in 2021, compared to 6% in 2020.
Further, with the launch of the Dimensity 8100/8000, it is looking to strengthen its position in the $300-$499 price band. These chipsets support the R16 baseband with power efficiency and performance improvements. With the Dimensity 9000, MediaTek is looking to enter the premium segment ($500+) in 2022. Almost all Chinese smartphone OEMs, like OPPO, vivo, Xiaomi and HONOR, will launch phones with this chipset. According to our chipset tracker forecast, MediaTek is likely to capture around 10% of the premium smartphone segment.

Samsung

Samsung SOCs witnessed a decline in all smartphone price segments in 2021 compared to the previous year.
Drastic changes were seen in the low-mid segment ($100-$299), where its share decreased from 17% to 7%, and in the mid-high segment, where its share decreased from 13% in 2020 to 6% in 2021, as Samsung Mobile outsourced many of its models (A, F and M series) to ODMs which integrated mostly Qualcomm, MediaTek or Unisoc solutions in different models depending on target price bands. The lack of refreshes in the Exynos series SoCs for the mid-to-high tiers was a trigger for the ODM move. The absence of the Note series and Qualcomm’s design wins across the popular Samsung foldables led to further decline of the Exynos chipsets.
With the Galaxy S22 series, Qualcomm has a greater proportion of design wins across markets than before, thanks to its industry-leading offerings and also the low yields of the new premium Exynos chipsets.

UNISOC

UNISOC showed exciting growth in 2021 in smartphones priced less than $200. In 2020, UNISOC chipsets only catered to phones priced under $100. In 2021, realme, HONOR, Motorola and Samsung launched phones with the Tiger series SoC. UNISOC has expanded its customer base with design wins at ZTE and TECNO, and entry into the Samsung Galaxy A series.
UNISOC captured a 26% share in the ≤$99 band in 2021, followed by a 4% share in the $100-$199 price band.
For 2022, we expect UNISOC to maintain the momentum with its portfolio catering to LTE smartphones as MediaTek struggles with supply issues for 4G chipsets and Qualcomm focuses just on 5G solutions. Also, a few design wins with 5G chipsets will add to the overall volumes.

HiSilicon

HiSilicon’s SoCs had a 16% share in phones costing $500 and above in 2021, which was a decline from the 30% share in the previous year, due to the US trade ban. It is running on the inventory it added before the ban.
For 2022, we expect its volumes to drop as the inventory gets depleted. Huawei has already started using Qualcomm SoCs in its new launches, but they are limited to 4G.

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