The global markets for smartphone and tablet applications processors (AP) both fell compared to a year earlier in the third quarter of 2015, according to Strategy Analytics.

The smartphone AP market declined 9% on year to US$5.3 billion in the third quarter of 2015. Qualcomm, Apple, MediaTek, Samsung LSI and Spreadtrum captured the top-five revenue rankings in the global smartphone AP market during the quarter, Strategy Analytics said.

Qualcomm, despite taking a hit, maintained its smartphone AP market share leadership in the third quarter, Strategy Analytics. Qualcomm's revenue share dropped to 36% from 48% in the third quarter of 2014, due to increased competition and high concentration of mid-range chips in its sales.

"Mid-range 64-bit chips such as the Snapdragon 410 and 615 performed well and helped Qualcomm to maintain strength in this key volume segment," commented Stuart Robinson, executive director of Strategy Analytics' handset component technologies service. "Strategy Analytics believes that Qualcomm's refreshed mid-range portfolio coupled with its custom architecture-based flagship chips will help Qualcomm rebound strongly in 2016."

Samsung LSI continued its progress and almost doubled its smartphone AP shipments in the third quarter of 2015 compared to a year earlier. "Samsung LSI capitalized on its high volume mid-range and flagship design-wins at its primary customer Samsung Mobile. Strategy Analytics believes Samsung LSI's early introduction of 14 nm-based chips helped to boost its shipments," said Stephen Entwistle, strategic technologies VP at the research firm.

In addition, Strategy Analytics estimated that China- and Taiwan-based AP vendors including MediaTek, Spreadtrum, HiSilicon and Leadcore together captured over 40% volume share in the third quarter of 2015. "MediaTek, in particular, made good progress with the help of its LTE APs such as the Helio X10, which has been adopted by multiple global OEMs," indicated Sravan Kundojjala, associate director at Strategy Analytics.

According to a separate research released by Strategy Analytics, the global tablet AP market fell 38% on year to US$828 million in the third quarter of 2015. Apple led the market with 37% revenue share, followed by MediaTek with 17% revenue share and Qualcomm with 16% revenue share.

"The tablet AP market's declining trend continued in third-quarter 2015. Except for MediaTek, almost all major tablet AP vendors registered negative growth in third-quarter 2015," said Kundojjala. "The tablet AP market, an extension of smartphone AP supply chain, took a hit in recent quarters, thanks to long replacement cycles and high concentration of low-cost players."

"Strategy Analytics believes that a potential consolidation in the supplier base could help," Kundojjala continued.

MediaTek overtook Intel to capture the top spot in non-iPad tablets in the third quarter of 2015, Strategy Analytics indicated. Meanwhile, 64-bit APs accounted for over 55% of total tablet AP shipments in the third quarter. The research firm expects 64-bit APs to continue to gain share in the next few quarters.