Qualcomm set to consolidate position in chip market: Report

With smartphone original equipment makers (OEMs) preferring Qualcomm chipsets in all major segments and third-party chip use continuing to rise in the smartphone market, the company is set to consolidate its market position in India in 2019, according to a report on Tuesday.

According to market research firm techARC, the largest number of smartphone models launched (42.2 per cent) were backed by Mediatek chipsets, followed by Qualcomm at 38.6 per cent. But it could not translate into great sales for Mediatek as the volume selling OEMs were in Qualcomm's kitty.

"The third-party chipset usage will increase with (the launch of) 5G as well as increasing expectations from OEMs of a chipset. This requires huge R&D investments and expertise," Faisal Kawoosa, Founder and Chief Analyst, techARC, said in a statement. 

The third pure-play chipset vendor UNISOC (earlier known as Spreadtrum) has carved out a niche in the entry segment (sub-Rs 5,000) and has been playing a vital role in helping OEMs launch 4G-enabled smartphones.

"Among these pure-play chipset makers, Qualcomm has not established itself in the relevant segments of growth, but also more than half of launches were using its chips, which strengthens its position," Kawoosa said.

Mediatek requires to define priorities for 2019, as the segment(s) where it has a strong base is tipped to witness decline in sales, the report noted.