Taiwanese Smartphone Application IC Market Volume Up 7.2% Sequentially in 3Q 2013

Taiwanese smartphone application IC market volume topped about 221.3 million units in the third quarter of 2013, up 7.2% compared to the previous quarter. This growth is mainly ascribed to the shipment growth of the Apple iPhone 5S, 5C, new Nokia and Xiaomi smartphones, which helped spur the demand for chips used in smartphones.

As for baseband and RF (Radio Frequency) chips, the market volume totaled about 58.8 million units in the third quarter of 2013, up 5.2% sequentially. Regarding the market volume by technology type, the adoption share of LTE (Long Term Evolution) chips reached about 53.9% in the same quarter. In 2014, in anticipation of aggressive deployments of TD-LTE (Time Division-LTE) by China Mobile, the number of smartphones supporting LTE chips is projected to continue on a steady rise in 2014.

The market volume of APs (Application Processors) scored about 41.6 million units in the third quarter of 2013, down 9.4% sequentially. In the fourth quarter of 2014, Taiwanese AP shipment volume is expected to hit the record high because of a surge in shipment volume of Apple's iPhones.

In the fourth quarter of 2014, mobile phone application IC market volume is expected to have arrived at about 306 million units, up 38.3% sequentially. The buoyant sequential growth is attributed to strong sales of several smartphones, mainly Apple iPhones, XiaomiHongmi and M3.

All app stores, including the App Store for iOS devices, are seeing the number of free applications growing at the constant pace. For apps developers who count largely on revenues generated from advertising and apps subscription, the correlation between the subscriber numbers and revenues is becoming stronger. Entering 2014 where the high-end smartphone market is becoming highly saturated, the availability of Snapdragon 410 has been the mainstay for apps developers to ensure them that 64-bit processors are not just for high-end smartphones. Therefore, the future influence of Snapdragon 410 on shipment volume of the Taiwanese smartphone application IC market is expected to be positive.

Taiwanese Smartphone Communications IC Market Volume, 1Q 2011 - 3Q 2014 

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