Strategy Analytics: 5G Drives 20 Percent Growth in Cellular Basebands in Q2 2020

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Despite the COVID-19 pandemic impact on shipments, the global cellular baseband processor market grew 20 percent year-over-year to reach $6.2 billion in Q2 2020, according to Strategy Analytics’ Handset Component Technologies service report.

This Strategy Analytics’ research report “Baseband Market Share Tracker Q2 2020: MediaTek Makes Strides in 5G” finds that Qualcomm, HiSilicon, MediaTek, Intel and Samsung LSI captured the top-five cellular baseband revenue share spots in Q2 2020. Qualcomm led the baseband market share with 39 percent revenue share in Q2 2020, followed by HiSilicon with 22 percent and MediaTek with 17 percent.

  • Strategy Analytics estimates that baseband shipments declined 15 percent in Q2 2020, driven by COVID-19 pandemic. GSM/GPRS/EDGE, W-CDMA and LTE baseband shipments all declined sharply in Q2 2020.
  • 5G basebands, however, registered strong growth and helped the overall baseband market to post the highest revenue figure in the last seven quarters.

Sravan Kundojjala , Associate Director, commented, “Qualcomm’s baseband average selling prices (ASP) reached their fifteen-year highest in Q2 2020, thanks to 5G. The company continued its 5G baseband momentum in Q2 2020 and captured just over 50 percent volume share in the highly competitive 5G baseband market. Qualcomm is well-positioned to grow its baseband shipments and revenue further in 2H 2020, driven by iPhone 5G models and mid-range Android 5G.”

According to Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service, added, “As we predicted, MediaTek gained share in both 4G and 5G baseband markets during Q2 2020. In the 5G baseband market, MediaTek crossed the double-digit market share mark in Q2 2020. 5G basebands helped MediaTek to post 63 percent year-over-year baseband revenue growth in Q2 2020. Strategy Analytics believes that MediaTek will continue its share gains through 2020, driven by its Dimensity-branded 5G basebands and Helio-branded 4G basebands.”

Stephen Entwistle , Vice President of the Strategy Analytics Strategic Technologies Practice, “Both HiSilicon and Samsung LSI saw their baseband shipments decline in Q2 2020. However, both companies made progress in the 5G baseband market and expanded into mid-range 5G. In light of further tightened restrictions on Huawei, MediaTek and Qualcomm could come to Huawei’s rescue if they secure licenses in time to supply key components to Huawei.”

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