Smartphone growth in emerging markets remains strong, and the trend continues informing investment decisions in the communications semiconductor sector, says Aalok Shah, Senior Vice President and Senior Research Analyst at D.A. Davidson & Co.
“In [emerging markets], you still have 3G adoptions increasing, particularly in India, China and Latin America. Those are the real growth areas right now,” Shah said. “China has now completed, for the most part, the infrastructure buildout for 3G, and so now we’re just waiting for the subscribers to come.”
Shah likes Broadcom (BRCM), a semiconductor company providing connectivity solutions within phones. The company’s combo chipset solutions provides phones with capabilities such as WiFi, Bluetooth, GPs and FM radio.
“[Broadcom] can do it all in what they call their combo chipset solutions, and they have almost 90% market share in that space,” Shah said. “I think that in anything mobile related you’re going to need these types of chipsets. Whether that mobile device is a tablet or a smartphone or even a regular phone, you’re going to see more and more connectivity devices.”
Rising Smartphone Growth Favors Wireless Equipment Makers
January 23, 2012
Smartphone Growth Leads to Fierce Competition for Bandwidth
February 17, 2012
Qualcomm (QCOM) Sells Chips to All Major Smartphone Manufacturers
February 19, 2013
Dover Corp (DOV) Supplies Growing Smartphone Manufacturers and Returns to Healthier FCF Levels
May 28, 2013
Avago Technologies Ltd (AVGO) Supplies Semiconductors to Growing LTE-Smartphone Market
May 30, 2013
