) is clearly the undisputed leader in the global wireless baseband
chipset market. According to a recent research report from Strategy
Analytics, in the first quarter of 2014, Qualcomm dominated thise
market with approximately 66% of revenue share, followed by 15% of
MediatekInc. and 5% of Spreadtrum Communications. Other two major
players in this field are
Marvell Technology Group Ltd.
Strategy Analytics cited Qualcomm's success predominantly
depends on its strong and diverse client base and a very powerful
4G LTE (Long-Term Evolution) product portfolio. Notably, Intel
failed to appear in the first three ranked companies in the
baseband chipset market for the first time in the last three years.
However, both Intel and Marvell recently received significant LTE
As a result, the global wireless baseband chipset market is
likely to become intensely competitive. As per Strategy Analytics
estimates, the size of the market had reached $4.7 billion in the
first quarter of 2014, reflecting a year-over-year increase of
2.5%. Qualcomm currently has a Zacks Rank #2 (Buy).
Qualcomm benefits from the significant rise in demand for 3G and
4GLTE wireless technologies and smartphones in the emerging
markets, particularly in China. Moreover, China's decision to
rollout the LTE technology isfurther drivingthe company'schip
), the largest Chinese mobile operator, has decided to offer
discounts on smartphones that will run on Qualcomm's superfast 4G
LTE (Long-Term Evolution) network.
China Mobile plans to offer five-mode LTE-enabled handsets. We
expect Qualcomm to benefit considerably as the company boasts an
extensive five-mode LTE chipset portfolio developed on its
state-of-the-art baseband technology. The five-mode standard
includes LTE, FDD-LTE, TD-SCDMA, WCDMA and GSM. Qualcomm currently
has more than 255 royalty bearing licenses worldwide. Additionally,
the company boasts over 90 single-mode OFDMA licenses.
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