Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 6 (Xinhua)-- according to Strategy Analytics's Mobile component Technology (HCT) service research report "Baseband Market share tracking in the second quarter of 2022," the Q2 global cellular baseband chip market grew 19 percent in 2022 to $8.7 billion.

Q2jade 5G baseband chip in 2022-earnings grew by 40% year-on-year, driven by the high-end price segment, while the mid-range 5G baseband was hit by inventory overstocking. Both MediaTek and Qualcomm's baseband earnings shrank in the second half of 2022 due to falling demand for smartphones in all price segments. Despite the weak market environment, the report argues that baseband manufacturers need to implement pricing principles based on increasing contract manufacturing costs.

CTOnews.com learned that the report showed strong revenue growth for Qualcomm and Ziguang Zhareui, "Qualcomm, MediaTek, Samsung LSI, Ziguang Zhanrui and Intel accounted for the top five Q2 baseband market share in 2022.

Qualcomm leads the baseband market with 59 per cent of revenue, followed by MediaTek with 29 per cent and Samsung LSI with 6 per cent.

5G baseband revenue increased by 40% year-on-year, while shipments increased by 16%. In addition, the combination of high-end and high-end 5G chips with higher prices increases the ASP (average selling price).

Strategy Analytics analysts commented: "Qualcomm's 5G baseband revenue increased by 53%, thanks to an increase in the combination of high-end and high-end Snapdragon application processors. The company's continued traction in the Samsung Galaxy S22 series has raised its average baseband price to another all-time high. Although the product is strong, Qualcomm will experience weakness in the second half of 2022 due to reduced demand in its core smartphone chip market."

Analysts said: "driven by the increase in 5G share, MediaTek reported its highest baseband revenue in its history in 2022. The company has shifted its focus to high-end, but high-end revenue contribution is still very low. Like Qualcomm, MediaTek's baseband revenues will contract in the second half of 2022 as customers, including Samsung, Xiaomi, OPPO and vivo, continue to adjust their inventories. Despite the weak market environment, the report believes that baseband suppliers need to exercise pricing principles in view of the increase in contract manufacturing costs. "

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