Why Snapdragon 805 processor capabilities are helping Qualcomm

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Snapdragon is one of Qualcomm’s important chipsets 

In the previous part of the series, we discussed some of Qualcomm’s (QCOM) chipset (or QCT) products and their performances. There’s another important wireless chipset that Qualcomm sells—the Snapdragon processor. Snapdragon is the mobile processor that provides advanced applications, graphics processing capabilities, and voice and data communication to mobile phones. Some of the recent smartphones launched with Snapdragon include Samsung’s (SSNLF) Galaxy S5, HTC’s (HTCKF) One M8, and Sony’s (SNE) Xperia Z2.

 

Snapdragon 805’s attractive features

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During the conference call to announce earnings, Qualcomm’s management mentioned that it launched Snapdragon 805 during the quarter. It has some attractive features such as Ultra HD support, 4K video capture, and playback which help users to stream and watch video content over the LTE network. Qualcomm also mentioned that the Snapdragon 410 processor that it launched last year is gaining a lot of traction, especially in China. Snapdragon 410 was launched to be compatible with low cost smartphones like Google’s (GOOGL) Android operating system.

Snapdragon is also one of the most expensive chipsets that goes inside a smartphone. According to a report from IHS Technology, the selling price of the Snapdragon 801 processor inside the Galaxy S5 itself is $41 which is quite large. This is considering that the average selling price of Qualcomm’s chipsets is ~$22, as the company reports.

All this is helping Qualcomm regain growth in its QCT business. As the previous chart shows, Qualcomm’s revenue growth rate was declining, but revived in the last quarter. The success of Snapdragon is certainly helping Qualcomm grow its chipset business.

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