Mobile Phone Baseband Industry Report 2010

Strategic Insights -

The global mobile phone baseband industry experienced a significant shift in 2010, with Qualcomm further consolidating its leading position in the areas of CDMA, WCDMA, and smart phones. The company's leadership in the smart phone field was enhanced, and it was poised to enter Apple's supply chain following Intel's acquisition of Infineon's wireless division. Meanwhile, ST-ERICSSON struggled to maintain its market share due to competition from Qualcomm, TI, and Infineon, and suffered losses for 13 consecutive quarters.

Key Takeaways:

  • Qualcomm's market share in the CDMA, WCDMA, and smart phone markets increased in 2010, with the company further consolidating its leading position.
  • Infineon's wireless division was acquired by Intel in August 2010, with the acquisition expected to be completed in Q1 2011.
  • ST-ERICSSON suffered losses for 13 consecutive quarters in 2010, mainly due to competition from Qualcomm, TI, and Infineon.
  • MTK faced challenges in the TD-SCDMA market, while Spreadtrum seized opportunities in the knockoff cellphone market, with its shipment increasing significantly and revenue tripling.
  • Broadcom developed 4G actively and acquired Beceem for $316 million in October 2010.
  • Marvell achieved good financial results in 2010, but faced challenges due to RIM's decreasing market share.

Statistics:

  • Qualcomm's market share in the CDMA market increased to 60% in 2010.
  • Infineon's wireless division achieved an operating profit of EUR142 million in the first three quarters of 2010, a substantial increase from EUR8 million in the same period of 2008.
  • ST-ERICSSON's revenue started to decline in 2010, with a more drastic drop in growth margin than other mobile baseband peers.
  • Spreadtrum's shipment increased significantly in 2010, with revenue tripling and operating profit rising greatly.
  • MStar's mobile phone business generated RMB220 million in revenue during the first three quarters of 2010.

Sources:

  • Global and China Mobile Phone Baseband Industry Report, 2010
  • PRNewswire, "ReportsnReports announces it will carry Global and China Mobile Phone Baseband Industry Report, 2010 Research Report"
  • Intel, "Intel Acquires Infineon's Wireless Division"
  • Qualcomm, "Qualcomm Further Consolidates Leading Position in CDMA, WCDMA, and Smart Phone Markets"