South Korean electronics giant Samsung was among the top two semiconductor chip buyers in the year 2018. In addition to Samsung, Apple was also among the top two chip buyers in 2018. Both Samsung and Apple together captured 17.9 per cent of the global market last year, according to a global research firm Gartner.
However, this global market share of 17.9 per cent is 1.6 per cent less than what it was a year before.
When it comes to semiconductor chips, the top 10 original equipment manufacturers (OEMs) increased spending to 40.2 per cent in 2018, which was up by 0.8 per cent from 39.4 per cent in 2017.
"Four Chinese OEMs -- Huawei, Lenovo, BBK Electronics and Xiaomi -- ranked in the top 10 in 2018, up from three in 2017. On the other hand, Samsung Electronics and Apple both significantly slowed the growth of their chip spending in 2018," said Masatsune Yamaji, Senior Principal Analyst at Gartner.
Chinese smartphone manufacturers have increased their market domination by either outperforming competitors or buying them out.
Therefore, semiconductor spending by the top 10 original equipment manufacturers (OEMs) increased their share significantly and managed to seize 40.2 per cent of the total semiconductor market in last year, resulting in 0.8 cent increase from the year before.
"Huawei increased its chip spending by 45 per cent, thus jumping in front of Dell and Lenovo to the third spot," added Yamaji.
Chinese smartphone maker Xiaomi climbed eight places to seize the 10th rank. Xiaomi also increased its semiconductor spending by $2.7 billion in 2018, recording a 63 per cent year-over-year (YoY) growth.
"With the top 10 semiconductor chip buyers commanding an increasing share of the market, technology product marketers at chip vendors must allocate a majority of their resources to their top 10 potential customers," noted Yamaji