Leading smartphone makers such as Samsung and Huawei have increased their chipset usage in their products to reduce their reliance on third-party suppliers. According to IHS Markit, this is causing a major shift in the market. The report showed that both Samsung and Huawei’s internal chipset shipments in the third quarter of 2019 were up more than 30 percent from the same period last year. In contrast, Qualcomm’s share fell 16.1 percent.
In addition, It was revealed that South Korean giant Samsung used its Own Exynos processor in the third quarter of 2019 in about 80.4 percent of mid-range smartphones, up from 64.2 percent in 2018. Overall, The use of Exynos’ Samsung smartphones reached 61.4% in the quarter.
On the other hand, 74.6 per cent of Huawei’s smartphones delivered in the third quarter used its own Kirin range, up from 68.7 per cent a year earlier.
This is a major shift for the Chinese giant, which used to use the Kirin chipset mainly on its flagship smartphone, but is now expanding its use to mid-range devices.
Qualcomm’s share of Huawei shipments fell from 24% in the third quarter of 2018 to 8.6% in the third quarter of 2019, the report added. MediaTek, on the other hand, increased its share of Huawei’s handsets, rising to 16.7 per cent in the quarter, up from 7.3 per cent a year earlier.
At the same time, however, Qualcomm and MediaTek are struggling to maintain and expand their market share. Competition between the two chipmakers has become increasingly hot as brands such as Xiaomi, OPPO and Vivo become major customers of Qualcomm and MediaTek.
In the third quarter of 2019, Qualcomm maintained its highest share of the global mobile processor market with a 31% share, followed by MediaTek with 21% of the market share. Samsung Exynos and Huawei Kirin account for 16% and 14% of the market.