Overview: Qualcomm's chipset products help it gain market share (Part 5 of 5)
Qualcomm is ranked third in the worldwide semiconductor market
Qualcomm (QCOM) is the third largest player in the semiconductor market behind Intel (INTC) and Samsung (SSNLF) in terms of revenues. According to a report from Gartner and as the following chart shows, Intel leads the worldwide semiconductor market by revenues with a share of 15.4%. SK Hynix and Micron (MU) are the fourth and fifth ranked players in this market. Although Intel leads this market, it’s mainly dominant in the PC and server chipset market. Qualcomm is a dominant player in the mobile chipset market. Since mobile market is showing faster growth than PC and server market, Qualcomm has a better chance of increasing its share in this market.
Qualcomm showing strong growth in mobile chipset market
Within the mobile chipset market, some of the Qualcomm’s chips such as Wi-Fi, RF360, and the Snapdragon processor have been doing extremely well. Its multimode 3G LTE chipset has also found greater adoption across the world as the world prepares to adopt faster and more efficient fourth generation LTE technology. Intel’s presence in the mobile market is small. As a result, it doesn’t pose much threat to Qualcomm despite Qualcomm lagging behind Intel in the overall semiconductor market.
Qualcomm looking to enter into new areas of growth
Qualcomm isn’t just restricting itself to the mobile and tablet market. It has started to enter into automotive, healthcare, and wearable device markets. It considers these markets to be the next growth areas after the mobile market. It recently introduced chipsets for new devices launched based on Google’s (GOOGL) Android Wear operating system. The wearable device market could show much faster growth in the years to come. Qualcomm wants to leverage this growth.
Browse this series on Market Realist: