Smartphone buyers will benefit from changing chipset market, analysts say

Smartphone vendors building their own chipsets will result in more competition in the low-end and cheaper smartphones

By , IDG News Service |  Hardware

Still not everyone will survive these changes, and there will be consolidation in the market.

"We don't have to wait two or three years for that to happen, it will take place in 2013," Saadi said.

ST-Ericsson's future will be decided in negotiations between ST and Ericsson that have already started, Ericsson said.

The transition period is expected to end during the third quarter of 2013, ST said.

ST-Ericsson was founded as a 50/50 joint venture by STMicroelectronics and Ericsson in February 2009. It married ST's wireless semiconductor division and Ericsson's mobile platform.

However, since its start ST-Ericsson has struggled to compete. During the third quarter it reported an operating loss of $174 million, which was an improvement over the $224 million it lost during the same period last year.

ST's exit is the outcome of a strategic review that started more than a year ago, according to the company. The company will now concentrate on sensors, automotive products and embedded processing, it said.

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