The global smartphone applications processor (AP) market declined 5% on year to reach US$9.4 billion in the first half of 2017, according to Strategy Analytics. Qualcomm maintained its smartphone AP market leadership with 42% revenue share, followed by Apple and MediaTek each with 18% revenue share.

"After a successful 2016, Qualcomm continued its momentum and gained market share with the help of a strengthened portfolio across the board from flagship to mid-range," said Sravan Kundojjala, associate director at Strategy Analytics. "After missing the initial 14nm FinFET AP wave, Qualcomm made sure it is one of the first companies with a commercial 10nm smartphone AP."

Qualcomm's flagship Snapdragon 835, a 10nm 64-bit chip integrating a gigabit-class LTE modem, has seen greater success than its predecessor Snapdragon 820/821. Strategy Analytics also believes that Qualcomm is poised for further share gains through 2017 with its strengthened Snapdragon 600-series of APs.

MediaTek's recovery will take time as its associated modem technology is still generations behind market leader Qualcomm, Strategy Analytics indicated. MediaTek's flagship Helio X series has not seen much success so far, while the mid-range Helio P series of chips performed strongly. "Understandably, MediaTek is set to de-emphasis Helio X in favor of Helio P to optimize its investment and to recover market share in 2H 2017," commented Stuart Robinson, executive director of Strategy Analytics' handset component technologies service.

"MediaTek hit a rough patch in 1H 2017, after registering a robust growth in 2016. MediaTek's weak portfolio coupled with increased competition from Qualcomm contributed to its share losses in 1H 2017," Robinson continued.

In addition, Strategy Analytics estimated that 64-bit APs registered a solid 24% year-over-year growth and accounted for 86% of total smartphone AP shipments in the first half of 2017.