Global Smartphone AP And SoC Shipments Decline By 8%YoY, Q3

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With 1% AP chip market share in Q3 2023, Huawei entered the market with an AP chip at the heart of its new Mate60 Pro smartphone. 

In the third quarter of 2023, the global market for smartphone application processors (AP) and system on chip (SoC) chipsets experienced a decline of 8% year-over-year (YoY). This downturn was attributed to an adjustment in inventory levels and a decrease in demand from Chinese original equipment manufacturers (OEMs). Despite this overall market contraction, several key players reported varied performances as per a Counterpoint report.

MediaTek emerged as the leader in the smartphone SoC market, capturing a 33% share. The company witnessed an increase in shipments during this period. This growth was driven by a reduction in inventory levels and heightened competition in the entry-level 5G segment. The launch of new smartphones in the low- and mid-end segments boosted the shipments of MediaTek’s Dimensity 6000 and 7000 series. MediaTek also enhanced the Dimensity 9300 with generative AI capabilities, contributing to its market performance.

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Apple saw a growth in its chipset shipments in Q3 2023, primarily fueled by the launch of its iPhone 15 and iPhone 15 Pro series.

Qualcomm also experienced an increase in shipments during this quarter. The stabilisation of inventory levels and the success of the Snapdragon 8 Gen 2 in the Samsung Galaxy Fold/Flip series were significant contributors to this growth. Qualcomm made updates to the Snapdragon 7 Gen 3 and Snapdragon 4 Gen 2 series in an effort to regain market share, though its primary focus remains on expanding its presence in the premium segment.

Samsung reported a slight increase in its chipset shipments for Q3 2023. The introduction of the Samsung Galaxy M14 series with the Exynos 1330 and the Galaxy A54 series with the Exynos 1380 helped in adding volume to Samsung’s overall chipset offerings.

UNISOC maintained steady shipments compared to the previous quarter in Q3 2023. The company saw some gains in the $100-$150 LTE portfolio. With inventory levels normalising, there is a positive outlook for UNISOC in Q4 2023.

With 1% AP chip market share in Q3 2023, Huawei entered the market with an AP chip at the heart of its new Mate60 Pro smartphone. Designed by Huawei, the chip has an integrated 5G modem. The launch of Mate60 marked Huawei’s return to the 5G smartphone business after years of ever-tightening U.S. Department of Commerce semiconductor technology export controls.

Remaining 1% market share is held by the rest of the AP chip producers.

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