Competition is intensifying for Qualcomm's (QCOM -2%) Snapdragon baseband/app processors, says...

Competition is intensifying for Qualcomm's (QCOM -2%) Snapdragon baseband/app processors, says Avian, which downgraded shares to Neutral. Nvidia (NVDA) has been picking up design wins, Mediatek has deals with Chinese OEMs, and Broadcom (BRCM) has a growing mid-range presence. This leads Avian to worry Qualcomm will see a mix shift towards cheaper standalone baseband chips, such as the one used in the iPhone 5. In Qualcomm's defense, there have been several high-profile Snapdragon design wins (I, II, III, IV) in recent months.

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Comments (6)
  • Trickdog
    , contributor
    Comments (581) | Send Message
    Makes no sense! Looks like the designs that Qualcomm has are keeping them above as the clear winner, especially with Samsung and Apple's top mobile phones. Is this analyst from Avian just trying to create an environment that is more conducive for shorting a stock like QCOM?
    8 Oct 2012, 04:43 PM Reply Like
  • freebra
    , contributor
    Comments (495) | Send Message
    Well said !
    8 Oct 2012, 04:48 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
    I don't fully agree with Avian's view on Qualcomm's competitive position, but the iPhone 5 doesn't use a Snapdragon processor, only a Qualcomm baseband chip. It kind of backs up Avian's argument.


    Samsung is more of a mixed bag. Some products, such as the U.S. version of the Galaxy S III, use a Snapdragon, but others use a Samsung Exynos processor or something else.
    8 Oct 2012, 04:54 PM Reply Like
  • joshpritchard
    , contributor
    Comments (124) | Send Message
    QCOM's quadcore S4s don't have integrated connectivity; they too have to be paired with discrete radios. Because of this, Apple's A6 and Samsung's next-gen Exynos 5 quadcore are likely more cost effective SoC solutions for each company in achieving quad A15-like APU specs/performance vs. buying QCOM's SoC. Same applies to NVDA with respect to Samsung/Apple not likely being within the addressable market -- which is why they presents it's segmented addressable market as the "non-Apple non-Samsung tablet and smartphone market".
    8 Oct 2012, 05:52 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
    The dual-core MSM8960 holds its own against the quad-core Tegra 3 (A9 instead of A15, but still). And Intel's single-core Medfield does fine in benchmarks. Cores are just part of the picture.


    I think Apple and Samsung have other reasons for using in-house app processors. Apple loves to do whatever it can internally and has put a lot of effort into optimizing the Ax line for iOS and low power consumption. Samsung owns its own fabs, and that gives them a bigger cost benefit to using an in-house processor than it would HTC, Nokia, etc.
    8 Oct 2012, 06:09 PM Reply Like
  • StockConsultant
    , contributor
    Comment (1) | Send Message
    QCOM has a good sized support gap if it doesn't hold here, 59.44 is the next support below (double).
    9 Oct 2012, 01:48 AM Reply Like
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