Qualcomm warns on chip weakness; misses “large customer” deal

Qualcomm warns on chip weakness; misses “large customer” deal

29 JAN 2015

Chipmaker Qualcomm lowered its semiconductor guidance for the second half of 2015, while seemingly confirming previous reports that it has been dropped as a supplier for Samsung’s anticipated Galaxy S6.

In a statement, the company said that it has seen a “shift in share among OEMs at the premium tier, which has reduced our near-term opportunity for sales of our integrated Snapdragon processors”, and that it expects its flagship chip Snapdragon 810 “will not be in the upcoming design cycle of a large customer’s flagship device”.

According to recent reports, Samsung has opted to use its own Exynos processors in the Galaxy S6 in place of the Qualcomm chips, with overheating issues cited as the reason. Samsung has previously used both Snapdragon and Exynos chips in Galaxy S-series devices targeting different markets.

At CES earlier this year, LG Electronics became the first vendor to announce a Snapdragon 810-powered device in the shape of its G Flex 2. And when quizzed on take-up of the new processors, Derek Aberle, the company’s president, said that it has “good OEM traction”.

The company also noted that it is seeing “heightened competition in China”. While it resolved a dispute with a licensee in the country, it said that some others are “not fully complying with their contractual obligations to report their sales of licensed products to us”, while a probe by the China National Development and Reform Commission is ongoing.

For the first quarter of fiscal 2015 (to 28 December 2014), Qualcomm reported a profit of $2 billion, up 5 per cent from $1.9 billion, on revenue of $7.1 billion, up 7 per cent from $6.6 billion.


Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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