- OTR Global reports Broadcom's (BRCM -2.2%) 3G baseband processor sales to top customer Samsung have fallen 50% Y/Y.
- Broadcom has faced tough competition in the baseband market from Qualcomm (64% 2013 share, per Strategy Analytics), as well as MediaTek and Spreadtrum, who have been growing quickly in the low-end and mid-range segments with the help of aggressive pricing. The company partly blamed its weak Q4 guidance on baseband softness.
- Broadcom is counting on sales of its recently-launched M320 4G baseband/app processor, a variation of a product acquired through the Renesas deal, to help offset 3G weakness.
- The Linley Group offered a mixed review for the M320, stating it "combines a leading-edge LTE baseband with a mediocre application processor." Qualcomm has dominated the 4G baseband market to date with the help of solutions that combine powerful app processors with advanced modems.
- Nonetheless, Samsung has designed the M320, aimed at sub-$300 phones, into its mid-range Galaxy Core LTE phone. JPMorgan reported in December Broadcom had scored 4G baseband wins with Samsung and another top OEM.