Qualcomm (QCOM) 23 Feb 2017

[admin]

Another chip stock, and this one has taken it a bit on the chin from Apple lawsuit. There is no obvious technical pattern yet but we're interested to see if the stock can recover a bit more

The static chart:

And the dynamic one

[admin]

Lots of interesting stuff happening at Qualcomm, a wireless chip giand which also has the leading mobile CPU (Snapdragon SoCs) and it's energy efficiency, size and speed can be reproduced in other markets that will grow a lot faster (IoT, like automotive, smart homes, VR/AR, etc.)

Feb. 23, 2017 /PRNewswire/ -- Today, Qualcomm Incorporated (QCOM) announced that its subsidiary, Qualcomm Technologies, Inc., has introduced a new virtual reality development kit (VRDK) for the Qualcomm® Snapdragon™ 835 mobile platform. The new Snapdragon VRDK gives developers early access to a VR head mounted display (HMD) built with the Snapdragon 835 mobile platform that is supported by an upgraded VR software development kit (SDK) that works with the HMD.

Qualcomm Introduces Snapdragon 835 Virtual Reality Development Kit

Feb. 23, 2017 /PRNewswire/ -- Today, Qualcomm Incorporated (QCOM) through its subsidiary, Qualcomm Technologies, Inc., announced the launch of its Head Mounted Display (HMD) Accelerator Program designed for original equipment manufacturers (OEMs) of virtual reality hardware. This virtual reality industry-first program is designed to help manufacturers reduce engineering costs, decrease the time it takes to create and ship new products, and provide means for OEMs to validate performance metrics.

Qualcomm Announces Head Mounted Display Accelerator Program for VR Hardware Manufacturers

Feb. 23, 2017 /PRNewswire/ -- Today, Qualcomm Incorporated (QCOM) through its subsidiary, Qualcomm Technologies, Inc., and LG Electronics (LG) announced coordinated efforts to facilitate testing and adoption of 5G and Cellular-V2X (C-V2X) communications into vehicles. Qualcomm Technologies and LG expect to showcase these next-generation wireless technologies through trials during the first half of 2018. This work builds on the long-established relationship between Qualcomm Technologies and LG since the two Companies delivered their first telematics system in 2004.

Qualcomm and LG Bring 5G and Cellular-V2X Communications Into Vehicles

Billions of internet-connected devices that can talk to each other are on the horizon, and Qualcomm Inc. (QCOM) wants to make sure it’s a major player in the Internet of Things market, announcing last week a new wireless semiconductor focused squarely on that market. This isn’t the first time Qualcomm has made a push into the IoT market, but it does come at a time when the leading mobile chipmaker is looking to diversify beyond the saturated smartphone market. In a press release, Qualcomm said the newest wireless chips were developed to handle a slew of connected devices, whether it’s TVs, security cameras, video monitors or home thermostats, among other things. The chip maker predicts the number of wirelessly connected devices in a household with four family members will increase to 50 by 2022 from just eight in 2012. Called 802.11ax, Qualcomm said the technology provides up to four times more capacity, making Wi-Fi traffic more efficient and resulting in speeds that are four times faster. Qualcomm is aiming to sample the technology in the first half of this year. “CAPACITY—not peak speed—has become the most important measure of a network’s ability to handle the ever-increasing demands of today’s diverse mix of application and services,” said Rahul Patel, senior vice president & general manager, connectivity, at Qualcomm Technologies, in announcing the new chip.

Qualcomm: New Wi-Fi Chip Addresses IoT Deluge | Investopedia

[admin]

In January, during the Consumer Electronics Show in Las Vegas, Qualcomm unveiled its latest highend chip—the Snapdragon 835—which it said is also aimed at the connected-devices market. The chip not only improves the performance of the next generation of smartphones but includes the ability to support augmented reality and virtual reality, boasts a longer battery life and smaller footprint, which will be attractive to makers of connected devices. In conjunction with the launch of the new chip, Qualcomm said Osterhout Design Group, a developer and manufacturer of mobile head-worn computing and augmented reality technologies’ latest smartglasses, will have the Snapdragon 835 processor inside. In a Wall Street Journal report, a spokesman at Qualcomm said the Snapdragon 835 processor will also be used in a new voice-enabled home appliance and a smart baby monitor.

Qualcomm: New Wi-Fi Chip Addresses IoT Deluge | Investopedia

According to a research report issued by Rosenblatt Securities analyst Jun Zhang, which was covered by Barron’s, Qualcomm stands to gain market share in the Chinese market thanks to its Snapdragon processors. The chips are used in smartphones by Vive and Oppo, two Chinese manufactures that are enjoying a boom in sales, which will bode well for the chipmaker. “We believe Qualcomm’s Snapdragon shipments largely increased in 1Q17 due to design wins from Vivo and OPPO. We expect Qualcomm to ship around [28 million] Snapdragon 825 units in March 2017 in China versus [8 million] in March of 2016,” wrote the analyst. He went on to predict Qualcomm’s market share will jump to 65% in 2017 from 50% in 2016. The analyst said Qualcomm should get more business from Oppo, Vivo, Xiaomi and Meizu, all of reached patent agreements with Qualcomm. The analyst noted Qualcomm also has “stable” market share with Samsung and the potential to increase its market share with Apple’s iPhone 8.

Qualcomm Poised to Gain In China Smartphone Market | Investopedia

[admin]

In short, what's the Apple case against Qualcomm?

Back in 2008, Sprint deployed its first WiMax network, a 4G standard which wasn't heavily dependent on Qualcomm's patent portfolio. Intel (NASDAQ:INTC) championed the use of WiMax chips, but Qualcomm opposed WiMax in favor of its upcoming LTE standard -- which it could generate more licensing fees from. At the time, Apple considered launching an iPhone for WiMax networks. Realizing that the move could hurt its LTE ambitions, Qualcomm agreed to pay Apple "rebates" for sticking with its baseband modems and waiting for its LTE standard instead. Those rebate payments were dependent on Apple doing two things --  exclusively using Qualcomm's chips (from 2011 to 2016), and not instigating any litigation which accused the chipmaker of unfair licensing practices. The FTC claims that Qualcomm essentially "bribed" Apple with those rebates to prevent it from switching to competing chipsets.   Over the past two years, Qualcomm was hit with antitrust probes worldwide, which all allege that it charges unfair licensing fees for its 3G/4G technologies. It was fined $975 million in China, another $854 million in South Korea, and could face up to $3 billion in additional fines in Europe and Taiwan. Apple claims that because it cooperated with authorities in Korea during the investigation, Qualcomm retaliated by withholding $1 billion in rebate payments -- which it's now suing to recover.

Should You Sell Qualcomm After Apple's $1 Billion Lawsuit? -- The Motley Fool

If Qualcomm loses its cases against Apple and other regulators, it could be forced to change its entire licensing model. That move would cause the QTL (licensing) business' margins to wither and crush its earnings since the business generates the lion's share of its profits. It could also jeopardize Qualcomm's planned acquisition of NXP Semiconductors (NASDAQ:NXPI), which would make it the largest automotive chipmaker in the world while expanding its patent portfolio. If Qualcomm doesn't close that deal this year, its top line will remain heavily exposed to the commoditization of the smartphone market and seemingly endless challenges against its licensing business.

Should You Sell Qualcomm After Apple's $1 Billion Lawsuit? -- The Motley Fool