Qualcomm (QCOM -3.7%) and Skyworks (SWKS -3.4%) end up on the list of names (previous) dinged by...

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Herr Hansa Comments (2922)
 
Ridiculous reasoning. QCOM currently provides 40% of PMICs, 35% of the Applications Processors, and a huge 45% of Baseband Modules smartphone components. RFMD and SWKS together provide over half the radio frequency modules for all smartphones. I go through this in my latest article.

http://seekingalpha.co...

Even if NOK failed and sold zero phones, all these companies would continue to supply components to other smartphone vendors. Selling off the component makers on NOK weakness is like expecting the entire smartphone market to cease just because NOK quits.
14 Jun 2012, 04:19 PM Reply Like

SA Editor Eric Jhonsa Comments (563)
 
The market's well aware of that. However, Qualcomm's chip content share with Lumia phones is easily higher than its share with mobile phones in general. Especially when you consider:

a) Qualcomm is supplying Snapdragon processors for Lumia devices. Snapdragons have much higher ASPs than the typical Qualcomm baseband.

b) They're also supplying a lot of peripheral chips (power management chips, RF transceivers, etc.)

There might also be worries that Nokia, in its weakened state, won't be able to throw the kind of resources at the Lumia line that people were expecting.

I don't know if Qualcomm deserved to fall as much as it did on Nokia's news, but there's a reason for its move.
14 Jun 2012, 04:30 PM Reply Like

Herr Hansa Comments (2922)
 
QCOM has a mobile semiconductor market share of 24% as of 2011 figures, more than any other component maker. NOK had 8.2% of the world-wide smartphone market in the first quarter of this year. The percentage potential loss of revenue to QCOM from a NOK shutdown would be very small. I think the self-off in QCOM is way overdone. This looks more like a bad knee jerk reaction.
14 Jun 2012, 04:39 PM Reply Like

Hawkeyes 2011 Comments (66)
 
Using any analysis from a Nokia future in competition with Apple, Samsung, Google's Android is way overblown. I doubt that Nokia is going to a major player in the Smartphone wars anytime soon. QCOM produces very popular Snapdragon ASP's, power management, RF transceivers, basebands, etc. for several device makers around the world. Nokia will be a player in this space but just one of several that QCOM provides the chips required to compete.
14 Jun 2012, 04:44 PM Reply Like

Russ Fischer Comments (1125)
 
Blaming the QCOM decline on NOK is a little silly.

NVDA, ALTR, MRVL, TXN, and XLNX were also down...with a flat SOX and major up market. They all have one thing in common....they all need 28nm wafers from TSMC and they ain't gonna get 'em until late 2013. XLNX and ATRA don't go into smart phones, why are they down?

Intel was up 1.66%

We better all hope that Intel can make enough of the right products to satisfy demand that TSMC, et al can't deliver or the smart phone and tablet guys are going to have a lean year or two.

I think the premise of the headline is wrong.
14 Jun 2012, 05:25 PM Reply Like

SA Editor Eric Jhonsa Comments (563)
 
XLNX and ALTR probably fell because of LSCC's warning. All three are FPGA makers.

NVDA, MRVL, and TXN fell, but nowhere as much as QCOM. Also, all three of them have wireless exposure.
14 Jun 2012, 05:33 PM Reply Like

Teriee Comment (1)
 
Regardless of the great stats , Qualcomm is a very manipulated stock...by whom???? Doesn't matter. The investor will always lose.
I learned the hard way. I will NEVER own QUAlcomm again
It may be a great co, but the stock is BOGUS!!!
15 Jun 2012, 05:57 AM Reply Like