Why Qualcomm’s chipset products are helping it gain market share



Qualcomm’s chipset products help it gain market share

Qualcomm (QCOM) announced its fiscal 3Q14 earnings a few days ago, in which the revenue growth of 17% for its chipsets (or QCT) business was better than its own expectations. During the conference call to announce earnings, Qualcomm’s management mentioned that its Wi-Fi and RF360 products are showing fast growth. RF360 is the radio frequency chipset that is a single chipset aimed to work with 40 different cellular radio bands across the world. According to Qualcomm, RF360 will also support all seven cellular modes including LTE-FDD, LTE-TDD, WCDMA, EV-DO, CDMA 1x, TD-SCDMA, and GSM/EDGE.

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The company also mentioned that its multimode 3G LTE chipset is also finding greater adoption across the world. According to a report from Strategy Analytics, and as the following chart shows, Qualcomm dominates the mobile chipset market, with a share of 64%. Meanwhile, MediaTek (MDTKF) and Intel (INTC) are distant second- and third-ranked players in this market. Spreadtrum (SPRD) and Broadcom (BRCM) are some of the other smaller players in this market, according to the report.


Qualcomm’s chipset products showing strong growth

During the conference call, Qualcomm mentioned that its Wi-Fi chipsets unit volume would grow by 40% this fiscal year. It also mentioned that over 100 devices have already been launched incorporating RF360. Its multimode 3G LTE chipset is also showing strong growth. According to Qualcomm quoting GSA as the source, 300 telecom providers across the world have already deployed LTE network, with 200 more committed to deploy in the near future. Also, over 2,000 devices based on its multimode 3G LTE chipset have either been launched or are in design phase.


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