Crowded mobile chip market likely to shrink further

As the demand grows for smartphones, which sport computer-like features, Marvell's history with RIM could help it win new chip clients, Needham & Co. analyst Edwin Mok said.

While Nokia has said it was happy with its current plans for a supplier base of six chip vendors, Mok said it could eventually choose new suppliers for different regions.

"It's conceivable that Nokia at some point down the road could use a MediaTek or a Spreadtrum," if it wants to cut costs further by signing up suppliers in Asia, Needham's Mok said. Mok's firm helped with the Nasdaq debut in June of China's Spreadtrum but Mok said he owns no shares in the company.