Qualcomm maintains market leadership in SoC GPUs

A wild mobile device market supports a wide variety of vendors; consolidation is inevitable.

The latest report on the marketplace for System on a Chip (SoC) graphics chips (mobile GPUs) shows Qualcomm maintaining its market leadership and Apple market share slipping as more Android devices come to market. Overall the market for SoCs with GPUs grew 32% in the first half of 2014, compared to the same period in 2013.

Market share changes for portable devices from 1H13 to 1H14. (Source: Jon Peddie Research)

The market for mobile GPUs is growing rapidly due to several factors, led by strong demand for tablets in China; ARM and Vivante gain the most from the growing Chinese market.

The new edition of the JPR report covers the market for GPUs in mobile (Personal) and Portable (notebook and game machine) devices. Total GPU market opportunity in all mobile platforms is 3,575 million units in 2018. The report examines and explains the leading industry trends:

Market slowdown will lead to consolidation. There are too many SoC suppliers chasing the same customers. Those with thinner margins will fail as the all forgiving growth tapers off.
Larger screens need more GPU power. The next wave of tablets will have 4k resolution; smartphones are rapidly approaching 50% 4K resolution.
Tablets as gifts. Tablet prices for the 6 and 7-inch units targeted at the educational market will drop to the point (<$40) that they will be given away as incentive to buy something else.
Market share shifts. As China’s domestic demand increases, Chinese SoC builders will gain major market share with cut-rate prices. Traditional suppliers will struggle to maintain ASPs and margins.
Superphones challenge small tablets. Super-sized smartphones with 6+ inch displays will take market share from 7-inch tablets offering greater functionality with radios and more convenient size.
Mobile GPUs performance. The performance level of an embedded GPU is always going to be several years behind that of a discrete GPU.

Comparing Qualcomm market share with its rivals in the third quarter of 2014. (Source: JPR)

GPUs in SoCs used in mobile devices are either proprietary designs from AMD, Intel, Nvidia, or Qualcomm, or purchased IP designs from ARM, Imagination Technologies, or Vivante. The relative market share of these companies is changing, but Qualcomm still has a commanding lead.

A complete ToC and summary can be found at: http://jonpeddie.com/publications/mobile-devices-and-the-gpus-inside/