Research Report: Qualcomm, New Chips & Emerging Competition - How to Stay
NEW YORK, January 16, 2013
NEW YORK, January 16, 2013 /PRNewswire/ --
With the competition bringing in more powerful chips, new chips are seen as
necessary to help QCOM maintain the top position for years to come.
Immediately after the announcement of rival chipmaker NVIDIA's highly
anticipated successor to Tegra 3 chip, the six times as powerful Tegra 4,
segment leader Qualcomm, Inc. (NASDAQ: QCOM) [ Full Research Report ] ^(1)
released its own set of quad-core chips with long-term evolution (LTE)
support, coming as a surprise to some -the company's first offering of this
For additional due diligence beyond the scope of this article, read our full
featured research report on Qualcomm, Inc. including full detailed
breakdown, technical analysis, analyst ratings and price targets -
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The new chipsets, Snapdragon 600 and 800 will be carrying the Snapdragon S4
Pro chip, which gives as much as 75 percent more CPU grunt and 50 percent
better graphics than its predecessor, in addition to a doubling of GPU
The chips are also based on last year's highly successful Krait architecture,
which has been widely adopted by the smartphone industry. They are built on
the same 28 nanometer (nm) technology, but they consume much less power
despite the performance and clock speed boost.
Smartphone sales are skyrocketing, considering the macroeconomic environment,
with 2011 posting 42 percent year-over-year growth rates and 2012 expected to
be just as high, according to Forbes. Meanwhile, tablet sales grew at a
whopping 250% in 2011, and are expected to reach 370 million unit sales come
With that, Qualcomm's market share is seen to grow from 65 percent in 2011 to
67 percent this year - according to Trefis - largely due to the company's
aggressive plans to expand to emerging markets like China and India.
However, Trefis also expects higher competition from NVIDIA, Texas Instruments
(TXN), and Broadcom (BRCM), opening the possibility of Qualcomm's market share
to fall below 63% instead. The expansion plans to emerging markets meanwhile
will continue to decline from 3.5 percent in 2011 to just 3.1 percent this
year as the markets command lower rates.
This shouldn't be much cause of alarm though, as the world's two dominant
mobile ecosystems, Google's (GOOG) Android and Apple's (AAPL) iOS will
continue to have a place for Qualcomm's chipsets. They have also partnered
with Microsoft's (MSFT) promising Windows Phone 8 platform, bannered by the
Snapdragon-powered HTC 8X and Nokia (NOK) Lumia 920.
While Android and iOS have an 85 percent market near-duopoly, Microsoft's
promising push with WP8 could quickly change that in an instant. Fortunately,
Qualcomm has been named the sole chipset supplier for WP8 handsets, having
covered that base as well.
^(1) ^ The Full Research Report on Qualcomm, Inc. - including full detailed
breakdown, analyst ratings and price targets - is available to download free
of charge at:
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