Samsung and Apple Continued to Lead as Top Global Semiconductor Customers in 2016
February 1, 2017 | Gartner, Inc.Estimated reading time: 2 minutes
Samsung Electronics and Apple remained the top two semiconductor chip buyers in 2016, representing 18.2% of the total worldwide market, according to Gartner, Inc. Samsung and Apple together consumed $61.7 billion of semiconductors in 2016, an increase of $0.4 billion from 2015.
"This is the sixth consecutive year that Samsung Electronics and Apple have topped the semiconductor consumption table," said Masatsune Yamaji, principal research analyst at Gartner. "While both companies continue to exert considerable influence on technology and price trends for the wider semiconductor industry, their impact has lessened due to falling expectations for future growth."
Although Samsung Electronics experienced intense competition from Chinese original equipment manufacturers (OEMs) in various markets including smartphones, LCD TV and LCD panel through 2016, the company increased its design total available market (TAM) and came back as the global top design TAM company in 2016 with 9.3 percent share. Apple decreased its design TAM in 2016 for the first time since Gartner started design TAM research in 2007, ending the year with 8.8% share of the market. The iPad did not sell well through 2016 and Apple also lost market share in the PC market.
Nine of the top 10 companies in 2015 remained in the top 10 in 2016. Cisco Systems dropped out of the top 10 in 2016 to be replaced by Chinese smartphone OEM, BBK Electronics, which grew rapidly in 2016. The top 10 now consists of four companies from the U.S., three companies from China, two from South Korea and one from Japan. This is the first time that three Chinese companies have ranked in the top 10, proving that even with the slowing macroeconomic situation in China, the importance of the Chinese electronics market is increasing.
"Even though the influence on the semiconductor industry of the top two strongest OEMs is weakening, the combined design TAM of the top 10 companies outperformed the average growth rate of the total semiconductor market in 2016," said Mr. Yamaji. "However, semiconductor chip vendors can no longer secure their businesses by relying on a few strong customers because market share changes much faster these days. BBK Electronics grew very fast in 2016 and increased its design TAM, but this extraordinarily fast growth also underlines how volatile the businesses in China can be. Technology product marketing leaders at semiconductor chip vendors need to take the risks of their major customers into account, and always try to diversify their customer base."
About Gartner
Gartner, Inc. is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior information technology (IT) leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals, digital marketing professionals and technology investors, Gartner is the valuable partner to clients in more than 10,000 distinct enterprises. Gartner works with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has almost 9,000 associates, including 1,900 research analysts and consultants, operating in more than 90 countries.
Suggested Items
AIM Solder Signs Shinil Fl Ltd. as New Distributor for Korea
05/08/2024 | AIM SolderAIM Solder, a leading global manufacturer of solder assembly materials for the electronics industry, is pleased to announce a new distribution partnership with Shinil Fl Ltd., a prominent supplier of technological solutions in the SMT and semiconductor sectors.
KYZEN’s Adam Klett to Keynote at SMTA Electronics in Harsh Environments Conference
05/07/2024 | KYZEN'KYZEN, the global leader in innovative environmentally friendly cleaning chemistries, announced today that KYZEN’s Director of Science, Adam Klett, PhD will present as a keynote speaker at the SMTA Electronics in Harsh Environments Conference. The event is scheduled to take place May 14-16, 2024 at the Technical University of Denmark in Copenhagen, Denmark.
Altus Equips SSTL with Advanced Cleaning Technology for Electronics
05/07/2024 | Altus GroupAltus Group, a leading supplier of capital equipment for the electronics manufacturing industry, has announced the successful installation of an advanced PCBA cleaning system at Surrey Satellite Technology Limited (SSTL).
GPV's Handover of Refurbished Factory Building
05/07/2024 | GPVOn 6 May 2024, Bjorn Fiskers, MD at GPV Electronics TH in Thailand and his team were handed the keys to our refurbished factory building, adding another 7,000 sqm to our current 15,000 sqm electronics factory. Our electronics factory in Thailand will comprise of a total of 22,000 sqm.
New Yorker, Major League Electronics Sign New Franchised Distribution Agreement
05/06/2024 | New Yorker Electronics Co.New Yorker Electronics, global distributor of electronic components, recently announced a new franchised distribution agreement with Major League Electronics, renowned manufacturer of interconnect products.