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Samsung and Huawei embrace DIY

According to new research from IHS Market | Technology both Samsung and Huawei are ramping up consumption of their own application processor solutions in their products.

Both have expanded their in-house smartphone application processor shipments by more than 30 percent during the third quarter of 2019 compared to the same period in 2018.

“Samsung and Huawei both are taking strategic steps to realign their smartphone product lines and supply chains away from third-party processor solutions and toward their own self-made alternatives,” explained Gerrit Schneemann, senior analyst, smartphones, at IHS Markit | Technology. “Each company has its own distinct rationale for making the shift. However, the aggregate impact on the smartphone market is a major shift away from third-party processors.”

Samsung is using its Exynos processor in 80 percent of its mid-range smartphone devices, Galaxy A Series shipped in the third quarter of 2019, up from 64 percent during the same period in 2018.

Huawei has employed its own processor chipset, the Kirin, in 75 percent of the smartphones it shipped in the third quarter of 2019, compared to 69 percent one year earlier and is expanding the reach of this solution to more price ranges.

The trend seems to be pointing one way!

And the big loser in all of this appears to be Qualcomm, which has seen sales tumble by 16 percent and now finds itself in an increasingly tough competitive market with Taiwan’s Mediatek to meet the needs of Xiaomi, OPPO and vivo, while the other members of the 'big six', Samsung, Apple and Huawei look to source their own devices.

Qualcomm and MediaTek are going head-to-head and the competition between these two chipset makers is certainly heating up. Both are trading blows taking share from one another.

Despite intense competition Qualcomm has managed to retain the top spot in the global mobile processor market, with a 31 percent share in the third quarter, followed by MediaTek at 21 percent.

Samsung’s Exynos and Huawei’s Kirin recorded 16 percent and 14 percent respectively.

Whatever the next few months hold, the tectonic plates are certainly shifting.

Neil Tyler

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