The American chip maker is incorporating strategic changes to emerge as a strong in the market in which it operates
The performance of the San Diego, Calif. firm has been spectacular since past few months and the future prospect of the popular chipmaker looks optimistic. Qualcomm Inc.’s latest processor, Snapdragon 820 received instant popularity and the recognition which helped the company in wiping away the bad time it faced after the launch of the Snapdragon 810.
The $76 billion organization has been trying to alter its work model and by the looks of it the changes made are bearing fruit for the company. In the past, the company has only forwarded its services to the higher end of the market. However, in an attempt to eradicate its previous mistakes, the company has disclosed its plan of developing processors for mid-tier smartphone manufacturers too. This initiative will help the company in loosening its high dependency on big clients.
Last year, the semiconductor manufacturing company witnessed disastrous financial position chiefly due to the withdrawal of its high profile client –Samsung. The problems began when the South Korean smartphone maker suspended Snapdragon 810 processor for its Galaxy 6 series smartphones after the controversial overheating issues of the smartphones ran on the 810 processors. Moreover, Samsung then went for internally manufactured chips. But, the chipmaker has successfully brought the South Korean technology leviathan back on its side and now the chipmaker’s Snapdragon 820 is powering Samsung’s luxurious Galaxy S7 and S7 plus.
Furthermore, Qualcomm’s strategy of shifting some focus on the mid-tier smartphone manufacturer is pretty smart as additional gateways will be opened for the company’s revenue stream. Moreover, the American semiconductor manufacturer has announced that it will be entering into the wearable market and for the accomplishment of such move the company has announced a chipset which has been built for the wearable devices and which is dubbed as Snapdragon Wear 2100 processor. Furthermore, the company has closed a partnership deal with Nixon in order to release a water-resistant Android based smart watch in an attempt to become the industry’s key player.
Earlier this week, the chipmaker giant unveiled that its first ever Virtual Reality software development kit has been developed whose architecture specially cater to the company’s latest sensation dubbed as “the Snapdragon 820 mobile SoC.” This development will be pivotal for the software makers who can write content which could efficiently make the most of the 820 chipset’s superior graphic processing capabilities. Since Virtual Reality market is in the phase of infancy therefore if Qualcomm uses its processors’ expertise efficiently then it may become one of the behemoths in the segment.
Moreover, the American chipmaker has taken distinct steps to form alliance with Chinese counterparts in order to penetrate into the server chip market. The Asian most populous country, China is the hub for chip manufacturers therefore a lot of companies have been trying to expand their operations in the region. Furthermore, Qualcomm’s recent move has startled Intel which is now considering the major threat posed by the San Diego based firm.
The Californian semiconductor business has made one thing clear that it does want to infiltrate the various categories of the processors business. During the Mobile World Congress, the company was successful in impressing the attendees with its Snapdragon 820 and now both the analysts and the investors are confident about the futuristic profits of the company. As of now, at the market which closed on Thursday, Qualcomm Inc. stock stood at a price of $51.38. The 52 week range of the stock is $42 to $72.
No comments:
Post a Comment