Qualcomm still on target
The mobile chipset maker has an encouraging growth outlook, buoyed by unprecedented growth of 3G wireless networks, among other reasons.
By: Zacks Equity Research
Qualcomm (QCOM), the largest chipset manufacturer for mobile handsets, reaffirmed its long-term financial target of achieving 10% annual growth for its top line and bottom line until 2015.
Management cited several reasons for this encouraging outlook, including:
- Unprecedented growth of 3G wireless networks in the emerging markets resulting in massive global demand for mobile data and video
- Gradual adoption of super-fast 4G LTE networks in the developed nations
- A shift in consumer taste from laptops to tablets.
Globally, approximately 85% of wireless networks support 3G technologies. According to Wireless Intelligence reports, more than 1.5 billion 3G subscribers will be added in these regions by 2015. The next-generation super-fast 4G LTE technology has also boosted Qualcomm. The growing acceptance of LTE technology has prompted mobile handset manufacturers to develop phones that will be compatible with this network.
Qualcomm benefited from the growing popularity of 3G smartphones using the Google (GOOG)-developed Android platform. Qualcomm’s next-generation Snapdragon processors are generally used in Android-powered 3G smartphones. The huge success of Apple's (AAPL) iPhone 4S was another growth driver for the company.
Qualcomm will commercially launch its dual-core Snapdragon MSM 8960 chipset by the end of 2011. Based-on 28-nanometer process technology, MSM 8960 is a dual-core multimode modem that uses the company’s next-generation micro-architecture called “Krait”. MSM 8960 supports EV-DO, dual-carrier HSPA+, and both TDD and FDD versions of LTE. This innovative chipset is optimized for both smartphones and tablets. Using Krait, the consumers will no longer be required to carry battery chargers together with their tablets.
Qualcomm received a shot in its arm from the upcoming Windows 8 operating system of Microsoft (MSFT). Microsoft owns and publishes Top Stocks, an MSN Money site. The two entities are collaborating to develop chipsets from Snapdragon platform for notebook and tablets using the Windows 8 operating system.
In addition, Qualcomm’s Gobi mobile Internet connectivity solutions will provide 3G/4G LTE connectivity to those devices that will run on Windows 8 software. With this, Qualcomm has become the sole chipset developer for both Windows smartphones and Windows notebooks.
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