Feeds

Qualcomm bucks global chip biz slump - report

But Intel and Samsung don't need to panic just yet

The Essential Guide to IT Transformation

Phone chip-maker Qualcomm defied the semiconductor industry decline to show double-digit year-on-year growth at a time when almost all of its rivals saw their sales slide, and the market as a whole dipped.

Or it will have done if a forecast made today by Gartner, a market watcher, proves correct.

Gartner today said it expects Qualcomm to post calendar 2012 revenues of $12.95bn, a whopping 29.5 per cent increase on 2011’s total of just under $10bn and sufficient to lift the company from sixth place in the world chip market to the number three slot.

That puts it behind only second-placed Samsung and market leader Intel, though it's a very long way to the rear of these companies.

The chip giant saw sales slip 2.7 per cent to $49.30bn, but since Samsung’s sales also fell - by 8.7 per cent to $24.97 billion - its lead over the South Korean company increased. Intel will go into 2013 owning 16.6 per cent of the market, while Samsung will take 8.4 per cent, according to Gartner’s numbers.

Intel’s decline is understandable: the PC market has been hammered by falling commercial demand in the face of troubled economies and by the rise of the tablet and the smartphone. The latter trend should have favoured Samsung, perhaps, but falling memory and flash storage prices hit it hard.

Qualcomm, on the other hand, focuses on processor and communications chip technology, allowing it to profit not only from rising smartphone sales but also the demand for 3G and 4G connectivity. It will walk away from 2012 with 4.4 per cent of the world chip market, Gartner predicted.

The trends helping Qualcomm aided its rival, Broadcom, too. Broadcom was the only other chip maker to show growth in 2012, according to Gartner’s data, though its revenues will be up only 8.8 per cent on 2011’s tally, to $7.79bn, the researcher reckons.

In turn, the growth moves Broadcom up from tenth place to ninth, displacing memory maker Micron in the process. The two ended up with 2.6 per cent and 2.3 per cent of the market respectively.

The remaining top 10 players include fourth-placed Texas Instruments, with revenues down 6.4 per cent to give it a market share of 3.7 per cent, and Toshiba, which drops from third place to fifth on sales down 13.7 per cent, giving it a 3.4 per cent share of the market.

Renesas, STMicro and Hynix took sixth, seventh and eighth places, respectively, for shares of 3.4 per cent, 2.8 per cent and 2.8 per cent. All saw year-on-year revenue falls - double-digit drops in the case of the European and Korean companies.

Worldwide semiconductor revenue totaled $298bn in 2012, a 3 per cent decline from 2011’s $307bn, Gartner said. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.