Who's Who in Smartphone Processorshttp://www.fool.com/investing/general/2012/10/11/a-whos-who-in-the-smartphone-processors.aspx Evan Niu, CFA
October 12, 2012
With the precipitous rise of global smartphone adoption, the applications processor is one of the most coveted component spots to score. Indeed, the smartphone processor market jumped 61% during the first half of the year to a whopping $5.5 billion, according to a recent Strategy Analytics report. Let's see who's who in the smartphone processor market.
And the winner is...
Analyst Sravan Kundojjala said Qualcomm's high-end LTE-equipped Snapdragon chips have gained "strong traction" with design wins at tier-one OEMs, and its advantages in LTE technology has helped the company stay ahead of the curve. Among those wins is Samsung's popular Galaxy S3, one of the top-selling Google (Nasdaq: GOOG ) Android devices in the market today, which carries a Snapdragon in some models.
A separate Strategy Analytics release earlier in the year also pegged Qualcomm's baseband market share at 45%, meaning the company is the leader in both processors and basebands. Its chip division remains the growth driver, with its CDMA technologies segment growing 31% last quarter to $2.9 billion, while the licensing business grew 27% to $1.6 billion.
Even though TI scored high on this list, investors can expect it to drop off in the near future as the company is effectively ditching mobile and its OMAP chips are being rolled into its embedded processing division as it gives up on smartphones. It's still proceeding with developing its next-generation OMAP 5 platform, but those chips will be destined for other industrial uses, like in automobiles, and not smartphones.
Chip giant Intel (Nasdaq: INTC ) was able to squeeze in with a small 0.2% unit share during the first half with its Medfield Atom processor, built on a 32-nanometer manufacturing process. That's a start for Chipzilla, especially since it hasn't pursued any mainstream domestic wins and is going after other markets, such as the Motorola RAZR i and Orange San Diego in Europe.
Instead, NVIDIA has been scoring notable tablet wins, su