Global and China Mobile Phone Baseband Industry Report, 2010 Now Available ReportsnReports

By Marketsandmarkets, PRNE
Sunday, January 2, 2011

DALLAS, January 3, 2011 - ReportsnReports announces it will carry Global and China Mobile Phone
Baseband Industry Report, 2010 Research Report in its store.

Browse the complete Report on:
www.reportsnreports.com/reports/51638-global-and-china-mobile-phone-ba
seband-industry-report-2010.html

STMicroelectronics, EMP and NXP's wireless division merged to be
ST-ERICSSON, which has not given play to the synergy, while its revenue has
started to decline, with the more drastic drop in growth margin than other
mobile baseband peers. ST-ERICSSON has suffered losses for consecutive 13
quarters, mainly on account of the competition from Qualcomm, TI and
Infineon. Particularly in the field of smart phones, ST-ERICSSON really has
nothing good or unusual to report, while Qualcomm develops well in the world
since 90% of the smart phones made by Samsung and SonyEricsson adopt
Qualcomm's basebands. Nokia develops more suppliers actively, and the
shipment of its mobile phone with the basebands of Infineon and Broadcom
soared in 2010, which grasps the market shares of ST-Ericsson. In respect of
TD-SCDMA, ST-Ericsson is challenged by MTK.

In 2010, Spreadtrum took the chance of MTK's mistake to aggressively
seize MTK's shares in knockoff cellphone market, so that the shipment of
Spreadtrum increased significantly, its revenue tripled and its operating
profit rose greatly. However, MTK will not always make mistakes, and the
absence of Spreadtrum in the arena of 4G and smart phone limits its
development.

In 2010, MTK almost made a fatal error because of the application of QFN
packaging. MTK overrated the SMT chip placement capability of mobile phone
manufacturers in Mainland China. Fortunately, MTK timely adjusted its
strategy, and the SMT chip placement capability of mobile phone manufacturers
in Mainland China was enhanced hereby. Finally, MTK protected its position.
Yet, MTK does not have the ability to achieve high-speed growth any more.
Like Spreadtrum, that MTK is not engaged in the field of 4G and smart phone
restricts its development, which can be shown from the brain-drain of top
talents of MTK.

Qualcomm has further consolidated its leading position in the areas of
CDMA, WCDMA and smart phones. Also, the leadership of Qualcomm in smart phone
field gets enhanced. After Intel acquired Infineon's wireless division,
Qualcomm is likely to enter Apple's supply chain. If smart phone is defined
in a stricter sense, Qualcomm is almost Intel which is the giant in PC
industry. Apart from Apple, the CPU of all top mainstream smart phones comes
from Qualcomm. In 2010, Qualcomm had to keep a low profile and lowered its
prices slightly in order to occupy market shares. With many years of
cooperation with TSMC as well as 65nm and 45nm technologies, Qualcomm will
see the rising gross margin in spite of the lowered prices. Qualcomm has
placed an additional order to TSMC for 700,000 pieces of 12-inch wafer in
2011, because the order backlog of Qualcomm has arranged till 2012.

TI performed well in 2010. Thanks to the massive shipment of Nokia's
smart phones, TI has stable shipment of high-priced products. TI's RAPUYAMA
has replaced RAPIDOYAWE jointly developed by Nokia and FREESCALE. New smart
phones of Nokia without exception employ RAPUYAMA as basebands. Although
RAPUYAMA doesn't deliver high operating speed, to Nokia it's competent and
economical. However, excessive correlative dependence is risky for both Nokia
and TI. Nokia has tried to apply the basebands of QUALCOMM to its smart
phones.

FREESCALE has transferred from baseband to application processor, so a
decline in performance is inevitable.

INFINEON's wireless division was acquired by Intel at the end of August
2010
, and the acquisition will be completed in Q1 2011. INFINEON's business
is booming in 2010, its largest client Apple has delivered a remarkable
performance, and its large initial-stage investment in Nokia has finally been
paid back with soaring shipments. INFINEON's wireless division experienced
even higher profit growth. Its operating profit achieved EUR142 million in
the first three quarters of 2010, a substantial increase compared with EUR8
million
in the same period of 2008. However, as mobile phone business needs
continuous considerable financial and human resource investment, INFINEON has
acknowledged its inferiority in this regard, especially to its rival QUALCOMM
which has established an extensive presence in 4G and 5G areas. Compared with
INFINEON's automotive, industrial control and smart card divisions, the
wireless division made meager profit, so INFINEON decided to sell the
division. At the time, Intel had been seeking for new development
opportunities in the fields other than PC, and was confident that it's
powerful enough to contend with QUALCOMM, so it acquired INFINEON's wireless
division. In a short term, the wireless division will bring satisfying profit
to Intel. Apple will not give up the long-term partner and design
architecture quickly. In the CDMA field, INFINEON has no corresponding
products, so Apple will adopt QUALCOMM's products.

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this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)

BROADCOM has a very wide business scope and diversified products. With
insufficient investment, its mobile phone baseband business has been sluggish
for years. However, in 2010, after years of development, BROADCOM finally saw
its shipment to Nokia and Samsung rise significantly. At the same time,
BROADCOM develops 4G actively. In October 2010, BROADCOM acquired Beceem for
USD316 million.

Benefitting from the growth of its major client RIM and the smart phone
sector, Marvell has achieved good financial results. As RIM is losing the
battle with Apple, Marvell has to consider how to develop new clients or
increase the shares of new clients.

MStar, going public recently, has been widely recognized as a promising
enterprise, but will encounter the difficulties of MTK and SPREADTRUM sooner
or later. During the first three quarters in 2010, MStar only gained RMB220
million
from the mobile phone business into which it has put much effort.

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