Qualcomm retained the largest share of the global mobile processor market in the third quarter despite strong competition from Huawei and Samsung. Qualcomm had a 31% share, followed by MediaTek with 21%, Samsung's Exynos with 16% and Huawei's Kirin with 14%. Samsung and Huawei have increased the consumption of their own processors in their products, resulting in a loss of market share from the main third-party provider, Qualcomm. Apple uses 100% native processors for its smartphones. Samsung and Huawei increased processor shipments by more than 30% in 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 Markit. | The technology. In contrast, Qualcomm's share fell 16.1% over the same period. "Both Samsung and Huawei are taking strategic steps to realign their smartphone product lines and supply chains away from third-party processors and into their own alternatives," said Gerrit Schneemann, senior smartphone analyst, at IHS Markit | The technology. “Each company has its own reason for making the switch. However, the overall impact on the smartphone market is a major shift from third-party processors. "However, Qualcomm and MediaTek have received a boost from other Chinese players such as Xiaomi, Oppo and Vivo.
Samsung analyzes mid-range devices
Xiaomi's adoption of MediaTek has gradually increased since the second half of 2018. However, Xiaomi's rollout of Qualcomm accelerated rapidly in the third quarter. By contrast, Qualcomm's share of Oppo smartphones has steadily declined from 82% in Q2019 42 to 58.2% in Q46. MediaTek's share of Oppo deliveries was 27% in the third quarter. This development is due to the increase in Oppo's deliveries of low-end models, resulting in a higher adoption rate of MediaTek chips. Also, Vivo is constantly increasing its adoption of MediaTek chipsets. Vivo shipped 2018% of its smartphones with processors made by MediaTek during the quarter. This is a significant increase from 75,4% over the same period in 2019. Like Oppo, rising sales of low- and mid-range smartphones like the S, Y, and V have boosted MediaTek's penetration rate. . Meanwhile, Samsung used 61,4% of its Q2018 74,6 shipments with Exynos, up 68.7% from the same quarter of 80.4, and Huawei used 2019% of its shipments with its processors. , against 64.2% per year. Before Samsung used its internally produced Exynos processor in 2018% of its mid-range smartphones, the Galaxy A series shipped in Q2.3 22.2, compared to 9% in the same period in 27.5. In contrast, the share of MediaTek and Qualcomm in Samsung smartphones fell to XNUMX% and XNUMX% respectively, compared with XNUMX% and XNUMX% a year earlier. "Samsung's focus has been intensely focused on its mid-range portfolio over the past year, using its A-series smartphones to launch new features and technologies instead of its flagship devices," said Jusy Hong, Research Director and smartphone analytics at IHS Markit. | The technology. "The change in strategy requires a greater reliance on in-house solutions to maximize development costs and efficiencies."
Huawei decreases dependence on US technology
Huawei is now extending the reach of its processors to more price ranges, including the mid-range Nova and Y phones, compared to using its Kirin chips primarily in flagship devices. "The US government ban prohibits Huawei from obtaining technology from US-based companies, including Qualcomm," said Anna Ahrens, senior smartphone and mobile analyst, at IHS Markit | The technology. "As a result, Huawei is working to remove US-based components from its supply chain by sourcing from different regions or providing their solutions." Qualcomm's share of Huawei shipments fell to 8,6% in Q2019 24 from 2018% in Q16.7 7.3. Taiwan's MediaTek, on the other hand, increased its share of Huawei phones to XNUMX% in the third quarter from XNUMX% a year earlier.