), the largest manufacturer of mobile chipsets, declared that the
company is facing an anti-monopoly investigation by the National
Development and Reform Commission (NDRC), the regulatory
authority of China. The company stated that it isn't aware of any
activity that violates the anti-monopoly law in China and will
continue to cooperate with NDRC. Qualcomm currently has a Zacks
Rank #3 (Hold).
The investigation is likely to impede Qualcomm's growth in
China. China - the largest emerging market - contributed
approximately 49% of Qualcomm's total revenue in fiscal 2013
(ended Sep 2013).
China Mobile Ltd.
), the largest Chinese wireless operator, is expected to launch
4G TD-LTE network throughout the country in early 2014. Qualcomm
is a major chipset developer for the TD-LTE network and the
upcoming deployment by China Mobile was seen as a significant
future growth potential.
Aggressive competition in the mobile phone chipset market may
hurt Qualcomm's profit in the future. The company is facing
severe competitive threat from its closest rival,
), which has been redesigning its chipsets for the mobile
computing market. Intel has started shipping its first multi-mode
LTE baseband modem.
Competition is likely to emanate from formidable rivals like
Broadcom and Nvidia.
) has introduced its first LTE baseband chipset in the market and
Nvidia introduced Tegra 4i, its first LTE-integrated application
Low-cost chipset suppliers such as, Mediatek of Taiwan,
RDAMiceoelectronics Inc. and Spreadtrum Communications of China
are also major competitors. Although, the global smartphone
market is expected to maintain its momentum in the next 4-5
years, the major thrust is likely to come from the low-cost
emerging markets, which may pressurize Qualcomm's margins.
BROADCOM CORP-A (BRCM): Free Stock Analysis
CHINA MOBLE-ADR (CHL): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis
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