Qualcomm expects it to further decline between 3% to 5% in fiscal 2015. So why is Qualcomm expecting its chipsets average pricing to continue to decline? Let’s find out.
Earlier in this series, we’ve been discussing Qualcomm’s (QCOM) dominance in the mobile chipset business. Such is Qualcomm’s dominance that Texas Instruments (TXN) had to exit this business in 2012, while Broadcom (BRCM) exited earlier this year.
In the previous part of this series, we discussed the potential growth prospects of high-speed LTE technology. Qualcomm (QCOM) is set to benefit the most from this transition simply because it dominates the LTE chipset market.
Telecom carriers across the world are in the middle of replacing their 2G/3G technology with the high-speed LTE technology. This transition is almost complete in major markets such as the US, Korea, and China.
According to a report from Strategy Analytics, as of 2Q14 and as the chart below shows, Apple’s share in this market was 26%, with Intel at 19% and Qualcomm at 17%.
Snapdragon is a mobile processor that provides advanced applications, graphics processing capabilities, and voice and data communication to mobile phones.