The market for baseband processors is reduced, but increases in the money thanks to 5G

The market for baseband processors is reduced, but increases in the money thanks to 5G
Strategy Analytics analyzed the situation on the global market for baseband processors-chips that provide cellular communication in mobile devices. The industry is reported to be showing mixed results.

In the second quarter of this year, shipments of baseband products in unit terms collapsed by 15% compared to the same period in 2019. The reason is the spread of the coronavirus, which has sharply reduced the demand for smartphones and cell phones.

The drop in deliveries was recorded in the GSM/GPRS/EDGE, W-CDMA and LTE segments, i.e. in the 2G, 3G and 4G standards. At the same time, shipments of 5G chips increased significantly, so the market was able to show growth in monetary terms, despite the pandemic and difficult economic environment.

So, against the background of growing supplies of expensive 5G processors, the volume of the global baseband market in the second quarter reached $6.2 billion in monetary terms. This is 20 % more than last year's result.

The market leader in terms of revenue is Qualcomm with a 39 % share. Huawei HiSilicon is in second place with 22 %, and MediaTek is in third place with 17 %.
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