The smartphone application processors (AP) market shrank 26 percent in Q2 2020, claims Counterpoint Research.
As the analyst pointed out, the drop is hardly surprising and coincided with the drop in smartphone sales caused by the pandemic.
Qualcomm remained the dominant player with a market share of 29 percent, but the market share fell by 3 percent compared to the same period last year.
According to Counterpoint Research, the Qualcomm issues have more to do with Huawei than the virus outbreak. In the second quarter of the year , Huawei overtook Samsung to become the number one smartphone maker, and with most of its phones sporting in-house Kirin chips, it’s no wonder Qualcomm’s stake has been falling.
The company’s ability to use Qualcomm-made chips was also impacted by US restrictions, which led to a decrease in the chipmaker’s stake in Huawei and Honor phones.
It is estimated that only 3 percent of Huawei phones sold in Q2 2020 featured a Qualcomm chip. In the second quarter of 2019, the number was 12 percent.