Mobile processor market grew 60 percent in 2011

The analyst firm expects demand for integrated processors -- those that combine an application processor with a cellular baseband -- to increase due to growth in low-end and midrange smartphones. "After a dip in demand for integrated processors, we expect growth to resume next year, with 73 percent of smartphones using an integrated processor by 2016," said Linley Gwennap, president and principal analyst with The Linley Group. "This is due to increased demand for low-end and midrange phones, as opposed to high-end smartphones that typically rely on standalone application processors." A new report also details the rise in 3D graphics performance to enable better web browsing and gaming. The need for sophisticated 3D graphics drives changes in overall mobile processor design, with many chips now integrating high-performance CPU cores, along with graphics processing units (GPUs) and increased memory bandwidth. Competition is also heating up in the core space as ARM faces increased competition from Intel and Qualcomm.