Double-Digit Revenue Growth But Pricing Pressure Will Continue
Boston, MA - April 10, 2014 - The global tablet applications processor market is set to register impressive growth of 14.6 percent CAGR in revenues from 2013 to 2018 to reach $7.2 billion in 2018, based on Strategy Analytics Handset Component Technologies service forecast report, "Tablet Apps Processor Forecast (2010-18): Double-Digit Revenue Growth Over Next 5 Years." http://www.strategyanalytics.com/default.aspx?mod=reportabstractviewer&a0=9352
Strategy Analytics reports that the tablet applications processor market will register a forecast double-digit revenue growth rate over the next five years. In addition penetration in tablets of applications processors with an integrated baseband will increase to 17 percent in 2018 from just 2 percent in 2012, thanks to low-cost quad-core 3G / 4G chips from Qualcomm, MediaTek, Spreadtrum and others. Multi-core penetration in tablets was close to 90 percent in 2013 and this is likely to continue.
According to Sravan Kundojjala, Senior Analyst, "Strategy Analytics notes that the barrier to entry is quite low in tablet applications processors compared to smartphone applications processors. Therefore, we forecast a modest average selling price (ASP) growth through 2018, despite the introduction of 64-bit chips. In addition, a high concentration of low-cost tablet chip vendors in this market will result in a price war which is expected to have a significant impact on ASPs."
According to Stuart Robinson, Director of the Strategy Analytics Handset Component Technologies service, "Strategy Analytics forecasts x86-based chip penetration in tablets will increase to 30 percent in 2018 from 2 percent in 2012. We expect Intel’s investments in Android solutions will result in future share gains."
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