Qualcomm and Apple: Are you the type of person who pays close attention to what is happening in the global smartphone applications processor market? If so, you will find this study to be quite interesting. Not only does it discuss the market as a whole, but it shows just how well Apple Inc. (NASDAQ:AAPL) is competing with the likes of QUALCOMM, Inc. (NASDAQ:QCOM), and others.
According to a recent study by Strategy Analytics, smartphone apps processor revenue increased by 60 percent in 2012. This is a huge leap when compared to where the market stood in prior years.
Here is the opening part of the study, showing the direction in which the market is headed as well as where Apple Inc. (NASDAQ:AAPL) fits into things in the years to come:
“Global smartphone applications processor market showed a robust 60 percent year-on-year growth in 2012 to reach $12.9 billion, according to the Strategy Analytics Handset Component Technologies service report, “Smartphone Apps Processor Market Share 2012: Apple, QUALCOMM, Inc. (NASDAQ:QCOM) and Samsung Together Capture 70 Percent Revenue Share.” This report provides smartphone applications processor unit shipments, revenues and average selling price (ASP) data for 16 chip vendors across stand-alone and integrated processor categories up to 2Q 2013.”
As you can see, Apple Inc. (NASDAQ:AAPL) is no slouch in this market. The Cupertino based company, along with QUALCOMM, Inc. (NASDAQ:QCOM) and Samsung, have captured “70 percent revenue share.” This is a big piece of the pie for the three companies at the top of the market.
Right now, Qualcomm is at the top of the market with 43 percent revenue share in 2012. That being said, Apple and Samsung are doing its best to catch up.
Here are a few points from the study, pertaining to Apple Inc. (NASDAQ:AAPL):
“Qualcomm, Apple, Samsung, MediaTek and Broadcom captured the top-five revenue share rankings in the smartphone applications processor market in 2012.”
“Apple ranked number two with 16 percent revenue share in 2012, thanks to its in-house designed A series processors, which featured in popular smartphones including the iPhone 4, iPhone 4S and iPhone 5.”
Apple Inc. (NASDAQ:AAPL) may be trailing QUALCOMM, Inc. (NASDAQ:QCOM) by more than 25 percent in this market, but this is a nice showing being that Cupertino does not focus nearly as much on this side of business as Qualcomm.
According to Strategy Analytics Senior Analyst Sravan Kundojjala, “Qualcomm continued its dominance in the smartphone applications processor market with 43 percent revenue share in 2012. Qualcomm strongly participated in the high-end market in 2012 with its LTE Snapdragon processors and APQ series stand-alone processors. Strategy Analytics believes that the year 2012 saw Qualcomm’s rise as a high-end player in the smartphone applications processor market, thanks to its in-house CPU and graphics technologies. The new Snapdragon 600 and 800 chips will help Qualcomm move further ahead of the competition.”
Apple is performing well in this market, and should continue to do so as the industry continues to grow.
Check back here for more updates on Qualcomm and Apple.
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