Strategy Analytics: Broadcom Emerging as Tier-1 Baseband Supplier

Building Scale Through Acquisition
BOSTON--(Business Wire)--
The Strategy Analytics Handset Component Technologies service report, "Baseband
Processor Profile: Broadcom to Acquire Further Market Share?" reveals that
cellular baseband revenues are not yet significant for Broadcom, and thus, the
company may have to continue its aggressive acquisition strategy in order to
build a product range and customer base strong enough to compete with Qualcomm,
Infineon and ST-Ericsson. This report analyzes Broadcom`s cellular baseband
strategy, product portfolio, customer relationships, strengths and weaknesses.

Broadcom is emerging as a strong baseband supplier with both EDGE and 3G
design-wins at top handset vendors Nokia and Samsung. Strategy Analytics notes
that Nokia and Samsung together command approximately 60 percent of the handset
market, a share of which would certainly help Broadcom`s ambitions to become a
tier-1 baseband supplier. This, along with company`s recent legal victory over
Qualcomm, suggests that Broadcom is well-placed to increase its market share.

Sravan Kundojjala, Analyst commented "Strategy Analytics believes that Broadcom
quickly needs to convert its aggressive mobile R&D spend into revenue and the
company may need to go for further acquisition to build scale. Broadcom`s
competitors ST-Ericsson and Infineon both chose the acquisition route to build
scale."

Stuart Robinson, Director of the company`s Handset Component Technologies
service added, "Strategy Analytics believes that Nokia wants Broadcom to survive
and prosper as part of the handset giant`s multi-sourcing strategy. Broadcom now
has an opportunity to become a tier 1 baseband supplier and the ball is firmly
in Broadcom`s court to deliver on that opportunity."

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence
focused on opportunities and disruptive forces in the areas of Automotive
Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless
Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with
offices in the UK, France, Germany, Japan, S. Korea and China, Strategy
Analytics works with clients through annual multi-client services, management
team workshops and custom consulting engagements. For more information, please
visit http://www.strategyanalytics.com/.

Strategy Analytics, Inc.
European Contact:
Sravan Kundojjala, +44(0) 1908 423 638
skundojjala@strategyanalytics.com
or
Stuart Robinson, +44(0) 1908 423 637
srobinson@strategyanalytics.com
or
US Contact:
Chris Taylor, +1 617-614-0706
ctaylor@strategyanalytics.com

Copyright Business Wire 2009