Boston, MA 01/30/2014 (wallstreetpr) – QUALCOMM, Inc. (NASDAQ:QCOM) has reported first quarter results and guidance for the second quarter on 29 Jan, 2013. The EPS guidance for Financial Year 2014 too has been revised upwards.
First quarter sale of processor chips were above expectations at 213Million, while the second quarter is likely to lower at 180 million to 195 million.
QUALCOMM, Inc. (NASDAQ:QCOM) dominance of the mobile processor now has challenger. Nvidia in the first week of January has announced that relased its Tegra K1 mobile app processor. This is the first K1 chip, earlier known as Logan and Parker, to include GPU features based on the framework of Kepler PC, the GPU architecture. Highlight of this mobile processor is the 192 GPU core, which is much higher than the 72 core in the Tegra 4. Where the K1 is expected to be competitive is the CUDA support to optimize apps. All this means that Graphics on tablets are of desktop resolution quality. This graphic-dominant chip will be available in two versions- with one of the versions incluing 64-bit ARM core taking on the likes of Apple and Qualcomm’s devices.
So where does this leave qualcomm?
QUALCOMM, Inc. (NASDAQ:QCOM) 64-bit ARM processors already in the market are priced higher but will see appreciation due to the app processor integration which is natively available. This proves to be a big positive for manufacturers. Besides, Intel too is waiting to enter the mobile processor space as well. Then there are others too in the mobile processor space as both Samsung as well as Apple bring their own processors to their devices.
Qualcomm on consolidation mode
QUALCOMM, Inc. (NASDAQ:QCOM) will see market consolidation with Snapdragon 805, which ships on the new range of Samsung Galaxy S5. Besides, Qualcomm has also added more repertoire to its current technology base through the acquisition of over 2,400 patents and patent applications from once leading desktop and laptop maker HP, which it had in turn built and acquired through its Web OS streams. Qualcomm continues to ride home profits on is current massive licensing portfolio to date.
The soft guidance for second quarter are in line with Apple and Samsung’s guidance level. Typically second quarters are considered weak performance phase.
