According to the latest report presented by Gartner on
worldwide semiconductor industry,
), which is the largest chipset maker of smartphones went up by
three places to reach the third position in terms of revenue in
As per the industry report presented by Gartner, the
semiconductor industry faced a lean period in 2012, where the
global revenue fell 3% to $297.6 billion. Such a decline in
revenue was mainly attributable to the fall in PC business
coupled with a slowdown in smartphone penetration across
When all the leading semiconductor vendors (total 25 vendors)
reported fall in revenue, Qualcomm and
) were the standout performers with positive revenue growth of
29.6% and 8.8%, respectively.
At the end of 2012, with 4.4% market share Qualcomm is
currently behind the market leader
) and Samsung Electronics, both having a market share of 16.6%
and 8.4%, respectively.
In the recently concluded quarter, Qualcomm reported strong
financial results mainly driven by huge demand for
smartphones/tablets coupled with continuous deployment of
3G/4GLTE deployments across different countries. The company's
chipset market share gained 110 basis points from last year to
Such robust growth in smartphone/tablet demand coupled with
the easing of supply constrain for 28 nanometer Snapdragon S4
processor, widely used in high-end wireless devices have together
induced Qualcomm to raise its revenue outlook by nearly 20%
(compared with fiscal 2012) for full fiscal 2013. Moreover,
emerging nations like India and China are continuously migrating
toward 3G and 4GLTE networks, hence creating more opportunity for
the company in the years ahead.
We maintain our long-term Neutral recommendation on Qualcomm
Inc. Currently, it has a Zacks #3 Rank, implying a short-term
Hold rating on the stock.
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