Market for mobile chips disappearing. When Henry Samueli shut down Broadcom's cellular baseband business, I happened to be visiting one of the founders. Many of the 3,000 engineers affected were his friends and the pain was apparent. However, I could see why the decision was necessary. Apple and Samsung dominate the mobile phone business and each made their own chips. Those two companies had growing market share and there just wasn't enough merchant business to sustain the chip vendors. Qualcomm's scale gives them a major advantage and the very efficient Mediatek has also grown.
Huawei, #3 or #4 in cell phone sales, is taking a similar path. Top analyst Linley Gwennap (quote in the headline) is enthusiastic about the new Huawei chip. He believes, "The new chip will outperform both the Snapdragon 810 and the Exynos 7420 on most mobile benchmarks, setting a new bar for smartphone performance."