SAN FRANCISCO—Broadcom Corp. slipped into the top five in sales of smartphone applications processors in the third quarter for the first time, surpassing Nvidia Corp., according to market research firm Strategy Analytics Inc.
Stuart Robinson, director of the Strategy Analytics handset component technologies service, credited the ramp of Broadcom's Android business for the firm's rise to the No. 5 spot in smartphone processors. "We continue to believe that Broadcom has the potential to be a strong competitor to Qualcomm in the long-term, given the company’s integration capabilities, cellular IP strength and strong emphasis on wireless markets," Robinson said.
Overall, the global smartphone applications processor market registered sales of $2.24 billion in the third quarter, a 59 percent increase from the third quarter of 2010, according to the latest report from Strategy Analytics (Boston) said.
Qualcomm Inc. again led the smartphone applications processor market in both unit shipment and revenue terms in the third quarter, accounting for 49 percent of revenue, Strategy Analytics said. Samsung Electronics Co., Texas Instruments Inc. and Marvell Technology Group Ltd. made up the rest of the top five in the quarter, the firm said.
According to the Strategy Analytics report, standalone applications processors outgrew baseband-integrated applications processors in the third quarter, accounting for 41 percent of total smartphone applications processor shipments, up from 31 percent in the third quarter of 2010. Strategy Analytics attributed this growth to strong demand for dual-core processors and growth in LTE smartphone shipments.
Qualcomm, a strong advocate of baseband-integrated processors, now also participates in the stand-alone applications processor market with its Snapdragon processors, Strategy Analytics reported.
“Qualcomm has become the company to beat in the mobile chip market and is moving far ahead of most of its competitors," said Sravan Kundojjala, a senior analyst at Strategy Analytics.