Though the Street was impressed with Qualcomm's (QCOM) FY13 guidance, Morgan Stanley thinks it...

|About: Qualcomm Inc. (QCOM)|By:, SA News Editor

Though the Street was impressed with Qualcomm's (QCOM) FY13 guidance, Morgan Stanley thinks it might still be conservative due to its implied forecast for a 200-250 bps Y/Y drop in the chip division's gross margin. MS argues the division's margin should rise given a mix shift towards costlier 4G baseband chips, and the fact FY12 margins were hurt by Qualcomm's need to tap additional foundries to offset TSMC's 28nm production issues.