In order to boost the bandwidth requirement for each home
appliances, Qualcomm Atheros, Inc., which is a business arm of
Qualcomm Inc.
(
QCOM
), unveils StreamBoost technology for Wi-Fi routers and
gateways.
Increased deployments of 3G/4GLTE technology along with higher
usage of smartphones and tablets have completely changed the
whole concept of watching TV or videos. Now users have enough
options to do multiple tasks simultaneously on tablets,
smarthpones as well as on PCs, hence connecting seven devices on
an average to a particular network.
However, these gadget lovers have to compromise on network
speed as a particular bandwidth has been allocated to these
users. But Qualcomm's new StreamBoost routers powered with VIVE
802.11ac technology offering speed up to 1.3 Gbps PHY rate of
Wi-Fi capacity will mitigate this problem of slow network traffic
and will ensure that each device connected to the network can
make maximum usage of the bandwidth.
Alienware and D-Link Systems, Inc. will be the new clients of
Qualcomm to use this new router. Moreover, VIVE 802.11ac
technology-based StreamBoost routers is expected to be sold to
consumers this spring at e-commerce and retail outlets in North
America, Europe and Asia.
Last year, Qualcomm acquired Atheros Communications Inc.,
which specializes in developing Wi-Fi chips for televisions,
video games, printers and other home devices. Atheros business
division is currently placed under Qualcomm Technologies, Inc.
(QTL) segment. So, the acquisition of Atheros has helped Qualcomm
to diversify in the consumer electronics segment and at the same
time has generated revenue growth of 32% year over year, from its
QTL division.
Qualcomm's plan to diversify into home segment division will
not only help the company to drive its top line but will also
help them to counter stiff competition from other chipset
manufacturers like
NVIDIA Corporation
(
NVDA
) and
Broadcom Corporation
(
BRCM
).
We maintain our long-term Neutral recommendation for Qualcomm
Inc. Currently, it has a Zacks #3 Rank, implying a short-term
(Hold) rating on the stock.
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