The Application Processor Market Remains a Tale of Two Theories: Standalone versus Integration

Smartphones & Mobile Devices Research Service | Wireless Semiconductors Research Service | Application Processors in Mobile Devices



SCOTTSDALE, Ariz. - October 16, 2007

Contact: Christine Gallen
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“Integration — the future of a combined baseband processor and a fully multimedia-rich application processor — will likely occur in the coming years,” says Doug McEuen, ABI Research senior analyst. “Most vendors use new semiconductor process technologies, 65nm and 45nm, to merge the two integrated circuits into one. This option requires less power, decreases the board space needed, and lowers costs, albeit at the sacrifice of many high-end multimedia features.”

 

ABI Research believes the integrated baseband and application processor solution bodes well in the wireless handset market, as a large percentage of that market is still in the cellular phone to low-end feature phone arena: exactly what market vendors want to target.  

 

McEuen continues, “As semiconductor process technology further evolves to the 65nm and 45nm range, look for baseband processors to completely absorb all the functionality of the application processor.”

 

In a recent study by ABI Research, it is revealed that the standalone application processor offers greater performance and much higher flexibility, which is perfect for the current smartphone market — as it requires every multimedia feature available. And vendors against the integration feel that the two processors have distinct functionality, which affords a natural break between the two technologies.

 

Conversely, as with all semiconductor technology, industry consolidation is a way of life; the application processor market is no different. ABI Research believes the pure-play application processor vendors will have to make a foray into the baseband processor market, if only to offer a complete line of processors, including the integrated variety. A complete line of processors would ensure complete product coverage in all wireless handset markets, low-end and high-end feature phones, and smartphones.

 

Application Processors in Mobile Devicespresents a detailed exploration of application processor technology and the requirements for competitive architectures, including essential product capabilities. The study discusses short- and long-term market implications, and includes key vendor profiles. It concludes with an in-depth market forecast, using empirical data to track both positive and negative market forces. It forms part of the Mobile Devices Research Service and the Wireless Semiconductors Research Service.

 

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.

 

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