Qualcomm to consolidate position in chip market

According to market research firm techARC, the largest number of smartphone models launched (42.2 per cent) were backed by Mediatek chipsets, followed by Qualcomm at 38.6 per cent. But it could not translate into great sales for Mediatek as the volume selling OEMs were in Qualcomm’s kitty.

“The third-party chipset usage will increase with (the launch of) 5G as well as increasing expectations from OEMs of a chipset. This requires huge R&D investments and expertise,” Faisal Kawoosa, Founder and Chief Analyst, techARC, said in a statement.

Third pure-play chipset vendor UNISOC (earlier known as Spreadtrum) carved out a niche in the entry segment (sub-Rs 5,000) and has played a vital role in helping OEMs launch 4G-enabled phones. “Among these chipset makers, Qualcomm has not established itself in the relevant segments of growth, but also more than half of launches were using its chips, which strengthens its position,” Kawoosa said.