Qualcomm maintained a high share of the global mobile processor market in the third quarter despite fierce competition from Huawei and Samsung.
Qualcomm held a 31% stake, followed by Mediatek by 21%, Samsung's Exynos by 16% and Huawei Kirin by 14%.
Samsung and Huawei have increased consumption of their own processors in their products, resulting in market share to shift away from the top third-party supplier, Qualcomm.
Apple uses 100% proprietary processors for its smartphones.
Samsung and Huawei expand processor shipments by more than 30% during the third quarter of 2019 compared to the same period in 2018, while Qualcomm and MediaTek compete fiercely to maintain their market share among second-tier companies, according to IHS Technology business activity.
In contrast, Qualcomm's share fell 16,1% over the same time.
“Samsung and Huawei are both taking strategic steps to reshape their smartphone product lines and supply chains away from third-party payment processors and towards their home-made alternatives,” said Gerrit Schneemann, senior analyst, smartphones, at IHS Technology Business.
“Each company has its own clear rationale for accepting a shift. However, the cumulative impact on the smartphone market is a significant move away from third-party processors.”
However, Qualcomm and MediaTek have received support from other Chinese players such as Xiaomi, Oppo and Vivo.
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Samsung is looking into mid-range devices
The adoption of Xiaomi software from MediaTek has been gradually increasing since the second half of 2018. However, Qualcomm's deployment by Xiaomi accelerated rapidly in the third quarter.
In contrast, Qualcomm's share of Oppo and smartphones has been steadily declining from 82% in the first quarter of 2019 to 42% in the third quarter. MediaTek's share in Oppo shipments was 58.2% in the third quarter. This development has been driven by Oppo's increased supply of low-end models, leading to high levels of acceptance of MediaTek's chips.
In addition, lifetime confidently increasing the adoption of the MediaTek chipset. Vivo shipped 46% of smartphones with processors manufactured by MediaTek for a quarter. This is a significant increase compared to 27% for the same period in 2018.
As Oppo increased sales of mid-range and low-end series smartphones such as S, G, and V, MediaTek's penetration rate increased.
At the same time, Samsung used 75.4% of shipments in the third quarter of 2019 with Exynos processor, up 61.4% compared to the same quarter in 2018, and Huawei used 74,6% of its processor shipments, up from 68.7% year-on-year. previously.
Samsung used its proprietary Exynos processor in 80.4% of its mid-range Galaxy series smartphones shipped in the third quarter of 2019, up from 64,2% in the same period in 2018.
In contrast, the share of MediaTek and Qualcomm in Samsung smartphones decreased to 2,3% and 22,2%, respectively, compared with 9% and 27,5% a year earlier.
“Samsung has been focusing on its mid-range portfolio over the past year, using its A-series of smartphones to launch new features and technologies rather than its flagship devices,” said Resistible because Hong, smartphone research and analysis director at IHS on business activity and technology.
"The change in strategy requires a more pronounced reliance on internal processor resources to maximize cost and development efficiency."
Huawei reduces dependence on US technology
Huawei is expanding the reach of its processors to higher price ranges, including nova and Y-series mid-range phones, compared to using its Kirin chips mostly in flagship devices.
“A US government ban barring Huawei from search technology from US firms, including Qualcomm,” said Anna Ahrens, senior analyst, smartphones and mobile, at its technology business.
“As a result, Huawei is working on removing us based on components from its supply chain, sourcing from different regions or by providing its own solution.”
Qualcomm's portion of Huawei shipments were down 8,6% in the third quarter of 2019, down from 24% in the third quarter of 2018.
On the other hand, Taiwan's MediaTek increased the proportion of Huawei phones, rising to 16,7% in the third quarter, up from 7,3% a year earlier.