Counterpoint: Global smartphone AP (application processor)/SoC (system on chip) shipments increased 6% year-on-year in the third quarter of 2021

According to the latest research from Counterpoint Foundry and AP/SoC Service , global smartphone AP (application processor) /SoC (system on chip) shipments increased by 6% year-on-year in the third quarter of 2021. Compared with the same period last year, shipments of 5G smartphone SoCs nearly tripled.

Research Director Dale Gai said: " MediaTek leads the smartphone SoC market with a 40% share, driven by competitive 5G SoCs and high demand for 4G SoCs . The growth of the mid-to-high-end SoC product portfolio has enabled MediaTek's revenue to grow sequentially. The average price of the product portfolio will continue to increase due to the launch of flagship products in the first quarter of 2022 and the chip price increase starting in the fourth quarter of 2021. The supply shortage of 4G chips has led to stronger demand, which has a greater impact on 4G SoCs . "

Global smartphone AP/SoC shipment market share — Q3 2020 vs Q3 2021

Source : Counterpoint Research Quarterly AP/SoC/Baseband Shipments Tracker, December 2021

Commenting on Qualcomm's performance, Research Analyst Parv Sharma said: " Qualcomm's smartphone SoC shipments grew both sequentially and year-on-year in the third quarter of 2021. The key to Qualcomm's revenue growth lies in its dual-source manufacturing capabilities for key components, namely the Snapdragon 800 series SoCs and its premium 5G modems. Qualcomm leads the 5G baseband market with a 62% share. It benefited from the success of Apple's iPhone 13 series 5G baseband modem chips and demand for its complete range of 5G SoC chips (from the flagship 8 series to the affordable 4 series). MediaTek also saw strong momentum from its Dimensity 700 and 800 series in the mid-to-low-end market . "

Global 5G smartphone baseband shipment market share, Q3 2020 vs Q3 2021

Source: Counterpoint Research Quarterly AP/SoC/Baseband Shipments Tracker, December 2021

Market summary:

MediaTek dominated the smartphone SoC market with a 40% share in the third quarter of 2021. Its share was mainly in the mid-to-low-end 5G product portfolio, while LTE SoCs further helped it strengthen its market position.

Qualcomm grew 9% thanks to its foundry dual sourcing strategy . It dominated 5G baseband modem shipments with a 62% share. The refreshed mix of the Snapdragon 7 , 6 , and 4 series will further help it gain share in Q4 2021 .

Apple maintained its third position in the smartphone SoC market with a 15% share in the third quarter of 2021. Its share will grow further in the fourth quarter of 2021 with the launch of the iPhone 13 and the arrival of the holiday season . However, component shortages will affect its sales during the holiday season.

Unisoc 's shipments continued to grow for three consecutive quarters in the third quarter of 2021. Its market share entered double digits this quarter, reaching 10% . The reason for the significant growth is that they have successfully expanded their customer base and cooperated with a series of major OEM manufacturers such as HONOR , realme , Motorola, ZTE and Transsion . In addition, it has also won orders for the Samsung Galaxy A series.

Samsung Exynos slipped to fifth place with a 5% share as it is recalibrating its smartphone portfolio strategy of sourcing and outsourcing to Chinese ODMs . As a result, the share of MediaTek and Qualcomm in Samsung's smartphone portfolio has been growing, from mid-range 4G and 5G models produced by ODMs to flagship models.

HiSilicon is still affected by the US trade ban. Huawei cannot produce HiSilicon Kirin chips. The accumulated inventory of Kirin SoCs is on the verge of exhaustion. Therefore, Huawei is launching its latest series of Qualcomm SoCs , but only with 4G capabilities.