Qualcomm expects a decline in demand for its processors in the current quarter

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POSTER: computer news   ||   QUALCOMM EXPECTS A DECLINE IN DEMAND FOR ITS PROCESSORS IN THE CURRENT QUARTER	DATE:2015-04-23
As it turns out, Samsung's decision to abandon the use of Snapdragon processor 810 in smartphones Galaxy S6 and Galaxy S6 Edge for Qualcomm had far-reaching consequences.  At least, reporting on the results of the second quarter of fiscal year 2015, which ended with the company for 29 March 2015 calendar year, Qualcomm is building not the most optimistic forecasts for the current three-month period - according to the manufacturer's statements, has already started the third quarter of fiscal year 2015. The share of processors Qualcomm in the range of components of a major smartphones brand   will decline as the company predicts.  It is not hard to guess that we are talking about Samsung.  The situation is aggravated by the fact that the Galaxy Note next generation will use identical to the Galaxy S6 element base, and the old models of Samsung smartphones with Qualcomm processor will be removed from production.  As a result, according to Qualcomm, the company's share of processors for smartphones expensive shrink as other clients prefer to use products of competitors, or processors of its own design.  In addition, the number of smartphone manufacturers delay the entry of products based on the processor Snapdragon 810. The total number of smartphones based on this processor exceeds 60 pieces.  But the demand for Qualcomm modem solutions will only grow, although this quarter dynamics may remain negative. While Qualcomm expects further developments with shortfalls royalty in China, the antimonopoly investigation against it start in South Korea, S and Europe.  The company receives royalties even from those manufacturers of smartphones that do not use its processors, but they all use Qualcomm's patented technology.  In this area in the last quarter was received record revenue due to the growing popularity of network solutions for 3G / 4G. If we go back to the last quarter as a whole, in the annual comparison Qualcomm has managed to increase its revenues by 8% to $ 6.9 billion., While net income  decreased by 46% to $ 1.1 billion. Qualcomm launches cost optimization program to adjust to changing market mobile processors.  Fast transition to new process technologies, according to the head of Qualcomm, is one of the keys to reducing production costs.  The company believes that in the long run it will be able to maintain market position, but the current situation with the refusal of some customers from using its processors may have an impact for the next fiscal year, which begins in the fourth quarter.   Related Products :

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