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Wednesday, 26 February 2014 12:43

Intel loses control of baseband market

Written by Nick Farrell



It used to be a contender

The move to LTE has killed Chipzilla’s pretence of interest in the baseband market. According to the Motley Fool, ever since the handset market began its shift to LTE, Intel has handed its part of the industry to Qualcomm and Mediatek.

Intel was once the Number two player in baseband, albeit with roughly 12 per cent share against Qualcomm's commanding 60 per cent share. However, Intel's smartphone apps processors were greeted by a yawn by the industry and as its LTE rollout was delayed. As a result, its baseband share has plummeted over the last few years from a reasonable about to sod all.

Intel must be gutted. The global cellular baseband market in 2012 was worth $17.8 billion, according to Strategy Analytics.

MediaTek and Qualcomm's have knocked Intel down to a dismal 8 per cent of the market. This poor performance was driven largely by a declining 3G market, of LTE multi-mode, coupled with a hostile pricing environment within 3G. Intel hopes that as 2014 rolls along, its LTE products will begin undoing the damage to its revenue caused by the 3G decline. If this is the case we will not see an improvement for Chipzilla until 2015.

Nick Farrell

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