Shipments of smartphone-use application processors in China slid 4.2% sequentially but grew 10.8% on year in the first quarter of 2014, according to Digitimes Research.
MediaTek's shipments of smartphone APs began to slow down in the fourth quarter of 2013 and continued to drop 6.1% sequentially in the first quarter of 2014, affected by its policy to focus more on mid-range to high-end models as well as by a lack of a comprehensive portfolio of its LTE parts, Digitimes Research said in its latest report.
China-based Spreadtrum Communications also saw its smartphone AP shipments decline 16.7% sequentially in the first quarter of 2014 despite an influx of short lead-time orders received in the previous quarter. Spreadtrum's prospects for 2014 are not optimistic as it lacks competitiveness in the single-core TD sector and is also unable to improve its product portfolio in the short term.
Qualcomm's QRD (Qualcomm reference design) solutions for entry-level and mid-range smartphones were still unpopular, causing a decline of its client base. Although Qualcomm has started promoting solutions for other platforms such as Windows Phone and Firefox OS, it will take time to see significant results. However, Qualcomm's shipments of related LTE products have begun to gain momentum, buoyed by highly integration of the chips.
HiSilicon Technologies and Nvidia managed to keep their shipment momentum in the first quarter but their shipments were down slightly from the previous quarter due to seasonal factors, Digitimes Research said.
This article is an excerpt from a Digitimes Research Special Report (China smartphone AP shipments – 1Q 2014). Visit our latest Special reports.