Several trends are affecting the market for mobile device semiconductors. Two have been the shift towards multi-core application processors and the addition of x86 and MIPS to what used to be purely an ARM play. Two newer trends are the addition of heterogeneous processing functionality and 64-bit processors for mobile devices, according to ABI Research.
The trend towards more integrated platforms is the most crucial because the revenue of standalone components is folding into integrated platforms and the revenue for mobile device semiconductors lie with the higher cost components – mostly the application processor.
While the shift from standalone components to integrated platforms is drastic over the next five years in terms of shipments, this shift is even more radical in terms of revenue. From 2013 to 2018, the share of integrated platforms compared to all application processors in terms of shipments will jump from 46 percent to 79 percent while the revenue shares of the same will be higher. Smartphone application processor (integrated and standalone) revenue as a percentage of total mobile device semiconductor revenue for the major components will increase from 71 percent in 2013 to 89 percent in 2018.