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Third Party Chipset Use Dominates The Smartphones Market In India

Mediatek-led maximum Smartphone models launched (42.2%) followed by Qualcomm with 38.6% of the Smartphone models launched in 2018 using its chipset solutions. However, the market leaders with higher sales volumes launched their Smartphones on Snapdragon by Qualcomm making it the most sold chipset in India.

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techARC today released its report on India Android Smartphone Chipsets for 2019. As per the report, Qualcomm is poised to further consolidate its strong market position with major Smartphone OEMs preferring it over the competition in all the major growing market segments of Smartphone in India.

Sharing highlights of the report, Faisal Kawoosa, Founder & Chief Analyst, techARC said, “The 3rd party chipset usage is only going to increase with 5G as well as increasing expectations from OEMs of a chipset. This requires huge R&D investments and expertise which these chipset specialists bring onboard.”

“Among these pure-play chipset makers, Qualcomm has not only been able to establish itself in the relevant segments of growth, but also more than half of the launches of Smartphones were based using its chipsets which strengthens its position,” Faisal added.

The report identifies that the maximum number of Smartphone models launched (42.2%) were on Mediatek Chipsets which was followed by Qualcomm at 38.6%. However, this could not translate great sales for Mediatek as the volume-selling OEMs were in Qualcomm’s kitty.

The third pure play chipset vendor UNISOC (erstwhile Spreadtrum), has also been able to carve out its niche in the entry segment (sub Rs 5,000) and has been playing a vital role in helping OEMs launch 4G enabled Smartphones in the segment.

Among the three pure-play chipset vendors, the report highlighted that Mediatek requires to define the priorities for 2019, as the segment(s) where it is strong is tipped to witness a decline in sales.

The report highlights that the CHINCOMM (China+Qualcomm) collaboration is replicating the similar synergies as of Wintel (Windows+Intel) that dominated the PC industry.

NOTES:

  • The report is based on analysis of over 300 major Smartphone launches in India capturing over 97% of the total market, for 2018.
  • techARC defines the Smartphone segments as Entry (Up to Rs 5,000), Basic (Rs 5,001 – 10,000), Mid (Rs 10,001 – 25,000), Premium (Rs 25,001 – 50,000) and Luxe (Above Rs 50,000).


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