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February 21, 2013

Global cellular baseband processor market rose 18% in 2012: report

Market was led by Qualcomm with a 52% revenue share.

By CBR Staff Writer

The global cellular baseband processor market recorded 18% year-on-year growth to reach $17.8bn in 2012, according to a Strategy Analytics Handset Component Technologies (HCT) service report.

The cellular baseband market was led by Qualcomm with a 52% market share in 2012, drven by its LTE baseband products. This was followed by MediaTek and Intel with 12.5% and 12.3% revenue shares respectively.

Strategy Analytics senior analyst ,Sravan Kundojjala, said that the LTE basebands accounted for 21% of Qualcomm’s total baseband shipments in 2012.

"We believe that Qualcomm is well-positioned to improve its LTE product-mix further with the help of its strong relationships with global handset manufacturers."

Strategy Analytics Handset Component Technologies service director, Stuart Robinson, said that the global cellular baseband market returned to growth in Q4 2012 after two consecutive negative growth quarters.

"Strategy Analytics estimates that LTE baseband shipments registered more than seven- fold growth in 2012 and significantly contributed to overall revenue growth due to higher than average selling prices.

"LTE basebands showed the fastest growth among all air interface technologies and accounted for 18 percent of total cellular baseband revenue in 2012, up from just 2 percent in 2011," Robinson added.

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According to the report the top-five spots in the cellular baseband processor market in 2012 were secured by Qualcomm, MediaTek, Intel, Broadcom and ST-Ericsson.

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