Qualcomm Chips Strengthens Business Growth
Almost every single Android device is powered by Qualcomm Snapdragon 820.
Qualcomm witnessed a major blow in its stock when its prestigious South Korean tech client, Samsung, stopped using its chip, Snapdragon 810, and started installing in-house chips in the mobile devices. The services were suspended when Qualcomm’s chips were alleged of being susceptible to over-heating. The performance issue impacted negatively on the company’s stock too. Now the semiconductor manufacturer is back on track with its premium chipset, Snapdragon 820, which features improved battery efficiency, graphics, connectivity, and power.
The Mobile World Congress, which took place in Barcelona, revealed the strength of chipmaker in the mobile market. Snapdragon 820 powers all the important high-end smartphones, such as Samsung Galaxy S7, HP Elite X3, LG G5, the Sony Xperia, and Xiaomi Mi5. Retaining Samsung as its client is most important for the Californian organization. When Samsung dumped Snapdragon 810 for its internally developed Exynos, Qualcomm’s stock plummeted down by 30%. Now, the premium chip will be installed in China, Japan, and U.S. versions of the S7 – a move that surely will recover the stock.
Moreover, at the launch event of Mi5 – Miami’s premium mobile phone, Qualcomm was featured significantly. Hugo Barra at Xiaomi prominently commends the latest chip and called Derek Aberle, the multinational semiconductor company’s president, to shed some light on the partnership of the two companies. Both the companies have finally concluded their negotiations for Qualcomm licenses payments relating to 3G and 4G wireless technology.
The maximum benefit reaped from the new and improved chip is by Hewlett-Packard. The Palo Alto, Calif firm intends to enter the highly competitive mobile game by introducing the Elite x3 with a Windows 10 phablet. The entire processing device is carried out on the mobile chip. With the two accessories that come along with the device, the phone can be turned into a desktop computer or a laptop.
The HP mobility division’s vice president and general manager, Michael Park, during an interview with a reporter, said at the matter, “For the first time, mobile chips can rival PC workloads.” This endorses that the Qualcomm’s chips rival with Intel’s in terms of power and strength.
After going through below average performance last year, the premium chip is a big step for Qualcomm to allow consumers forget about Snapdragon 810 performance nightmare. The company has to keep on proving that it can provide the best chips for almost all the high-end devices. Snapdragon 820, nevertheless, has shown its substance during the MWC along with company’s intention of winning up to 100 designs.
With the saturation of the smartphone market, only winning designs of the phone will not be enough. In the fastest growing technology world, the challenge lies for the Californian firm to coherently transition its silicon to a new class of products including, but not limited to, virtual reality headsets, drones, cars and servers.
At the market closed on Thursday, Qualcomm stock was at a price of $51.64. The stock has gone up by 3% since last Friday. Moreover, the 52-week range of the stock is $42.24 to $74.09.