5G adoption a booster for smartphone application processor market

Mumbai: The smartphone application processor (AP) market that declined 26 per cent in the second quarter this year is set to be on a growth trajectory from 2021 onwards as 5G adoption reaches emerging markets, according to a new report.

A mobile application processor is a system on a chip (SoC) designed to support applications running in a mobile operating system environment.

Qualcomm led the global AP market with 29 per cent market share in Q2 with a drop of 3 percentage points compared to last year owing to Huawei’s HiSilicon SOCs.

HiSilicon’s shipments in China increased, leading to decline in Qualcomm market share, the report said on Tuesday.

“While the overall smartphone market declined due to the ongoing pandemic, the decline in market share for Qualcomm was partly also due to Huawei, which increased the use of HiSilicon APs after US restrictions, and its growing share in China, the world’s largest smartphone market,” explained Neil Shah, VP of Research at Counterpoint.

Qualcomm’s share in Huawei (including HONOR) smartphones declined from 12 per cent in Q2 2019 to 3 per cent in Q2 2020.

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