Qualcomm lost 3% of global smartphone chip market share in Q2 2020, against a backdrop of falling sales

Qualcomm lost 3%

Qualcomm lost 3% of global smartphone chip market share in Q2 2020 in a difficult market, which fell by 26%, according to the latest market share data.

The report, by Counterpoint Research, explained that the main reason for the decline in smartphone chips is because of sharply reduced smartphone sales, due to the global pandemic. The report also explained that Qualcomm remains the number one smartphone chip supplier with 29% of the market, but this share is down from 32% compared with Q2 2019. Apple, HiSilicon and MediaTek all gained market share over the year – Apple moved from 11% to 13%, HiSilicon from 12% to 16%, and MediaTek gained 2% to take 26% of the market share.

Going forwards, Huawei’s struggles with the US authorities and the trade ban is likely to benefit the other smartphone chip major vendors of the industry. As Huawei is less able to manufacture and sell smartphones, consumers will buy competitor devices powered by chips from some of other vendors. Samsung is also believed to be positioning its high end Exynos chipsets to compete against Qualcomm, which could be interesting as so far only a very small number of manufacturers outside of Samsung have used the Exynos SOCs.

Counterpoint also believes it is seeing the early signs of a recovery in smartphone shipments, which will underpin a recovery in smartphone SoC sales. The smartphone chip market is going to change in the coming months as Huawei / HiSilicon is essentially squeezed out, giving other vendors an opportunity to grow. New 5G network technologies and a renewed focus on mobile gaming – areas where we have seen developments from both MediaTek and Qualcomm – is expected to drive the market, with gaming-based phones expected to grow at over 1000% (from a very low base!) in the coming year.

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