Bits + chips
Digitimes Research: China mobile AP shipments to growth over 18% in 2H16
Eric Lin, DIGITIMES Research, Taipei

Shipment of mobile application processors for smartphones and tablets in the China market are expected to grow 18.6% in the second half of 2016 from those shipped in the first half of the year due to seasonal demand and inventory build-ups for the first quarter of 2017, according to Digitimes Research.

Due to a lack of high-end solutions, MediaTek is expected to see its smartphone AP shipments grow 6% sequentially in the third quarter, and the growth rate will dip to 5.6% in the fourth quarter despite seasonal demand, Digitimes Research said.

Qualcomm will see shipment momentum of its mid-range to high-end smartphone APs continue in the second half of 2016 as its mobile APs have been verified for being able to support LTE Cat. 7 specifications as required by China Mobile. With additional orders from new clients, Qualcomm's smartphone AP shipments will grow 12.9% sequentially in the third quarter and expand another 26.6% in the fourth quarter.

Spreadtrum is expected to begin small volume shipments of its 4G SC98960 solutions for the entry-level to mid-range smartphones in the fourth quarter of 2016. Although the SC98960 also supports LTE Cat. 7 technology, shipments of the chip will be limited due to its late launch and issues related to its software, Digitimes Research commented. However, buoyed by its existing portfolios, Spreadtrum will see its shipments increase 10.6% and 6.5%, respectively, on quarter in the third and fourth quarters.

With regard to tablet APs, MediaTek is expected to have its shipments grow 9.1% and 16.7% on quarter in the third and fourth quarters, respectively, on inventory build-ups by clients. Meanwhile, Rockchip Electronics' tablet AP shipments will grow 15.4% and 16.7%, respectively, during the same quarters.

Allwinner Technology will see its tablet AP shipments surge 90% sequentially in the third quarter thanks to the launch of new 64-bit products, but the growth rate will slow to 7.1% in the fourth quarter on seasonality. Intel will post a 28.6% growth in the third quarter as it continues to clear out its SoFIA solutions before recording a 44.4% decline in the fourth quarter on phasing out of the tablet APs.

This article is an excerpt from a Digitimes Research Quarterly Data Report (China smartphone AP shipments - 2Q 2016). Visit our latest Data reports.

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