Samsung overtakes Apple in overall mobile chip market share

Samsung overtakes Apple in overall mobile chip market share

The Korean based company has surpassed the market share of Apple during the first quarter of 2020. Samsung still seeks to increase its share in the succeeding years.

2020 has so far been an up and down year for most mobile smartphone companies. There is a brewing uncertainty about the effects brought by this pandemic.

Roadmaps for production and launches of new smartphones and tech items have been postponed. Some have been halted altogether.

Nevertheless, some companies are still thriving regardless of the situation. Examples of these would be Huawei and Samsung. For the former, smartphone sales have been supported in their Chinese home market.

For the latter, the chip production business has been reaching new heights.

World’s third largest manufacturer of smartphone application processors (AP)

Samsung cements its position as the world’s third largest manufacturer of APs. Between 2018 and 2019, only Huawei and Samsung were able to see positive growth in their total marketshare.

Counterpoint’s report shows that Qualcomm lost 1.6% of the market share between 2018 and 2019. The world’s second biggest manufacturer, MediaTek, lost 1.1% of the market share.

Samsung on the other hand grew by 2.2 percent. While Huawei’s AP manufacturing company, HiSilicon, grew by 2.5 percent.

Positive growth projection for Samsung, but not necessarily for Huawei

Samsung is expecting even more positive results between 2019 and 2020. At present, the company is working on the 5G capable processors for smartphones.

In fact, reports have shown that the Korean company has already poured in massive amounts of funding for these chips’ research and development.

Samsung is enjoying their foothold in the U.S and European markets. The company sees the 5G capabilities of their processors as their cash cow moving forward.

Unlike Samsung, Huawei is facing a big problem with the U.S. boycott of their products. Even more so, their chipset production is put at a risk because of their initial reliance with TSMC.

Mid-tier and low-tier phones are already 5G capable

The expectation that the new chip sets manufactured by Samsung will generate huge revenues is founded on one principle. Companies are not sitting on their hands to do a wait and see approach for the success of their 5G capable flagship phones.

They are rolling out 5G capabilities across all price segments of their line up for a faster adaption to the technology. This means that more and more people will be able to get their hands on 5G capable phones.

Unsurprisingly, Samsung’s total smartphone sales are not driven by their flagship S Series. Instead, they are powered by their middle tier Galaxy A series. This only means that Samsung’s chip manufacturing business already has a ready market with the Galaxy A smartphones.

Image courtesy Blaz Ezretic/Pexels

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