Seeking Alpha

China Mobile to reportedly require 5-mode phones; Qualcomm could benefit

  • BrightWire and Marbridge Consulting report China Mobile (CHL -0.6%) has told its phone suppliers all 4G phones provided from May onwards must support five air interfaces - 4G TD-LTE and FDD-LTE, 3G TD-SCDMA and W-CDMA, and 2G GSM. Currently, OEMs can get away with supplying phones supporting only the three interfaces used by China Mobile - TD-LTE, TD-SCDMA, and GSM.
  • The move could benefit baseband chip giant Qualcomm (QCOM -0.4%), given the company's expertise in supporting a huge variety of air interfaces and frequency bands. That is, provided the Chinese government's antitrust probe doesn't get in the way.
  • Strategy Analytics estimates Qualcomm, buoyed by a dominant 4G baseband position (97% share as of Q1 2013), had a 64% 2013 baseband revenue share. But competition is intensifying: Intel, Broadcom, MediaTek, and Nvidia are all in the midst of launching 4G baseband parts.
  • Last November, Qualcomm announced the Gobi 9x35, a next-gen 4G baseband that offers theoretical max speeds of 300Mbps (2x its predecessor) and supports six air interfaces.
Comments (1)
  • bruinwu
    , contributor
    Comment (1) | Send Message
     
    good news to Qualcomm
    13 Mar, 08:30 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|