QUALCOMM Inc.QCOM , the world's largest mobile chipset developer, has added yet another feather to its cap. Last week, at Google Inc.'s GOOGL I/O conference, the company announced that Google's next-generation Project Tango smartphone development platform will run on its Snapdragon 810 processor.
Notably, the development platform will be available in the market in the third quarter of 2015.
In Feb 2014, Google's Advanced Technologies and Projects (ATAP) announced Project Tango to give mobile devices a human-scale comprehension of space and motion. The devices under this project comprise customized hardware and software enabled with capabilities of 3-D motion tracking and simultaneous mapping of the environment.
Snapdragon 810 is Qualcomm's first flagship product to feature a 64-bit multicore CPU and LTE-A multimode modem. This enables it to support up to 3x20MHz Category 9 carrier aggregation with download speeds of up to 450 Mbps, as well as aggregation across both TDD (Time Division Duplex) and FDD (Frequency Division Duplex) carriers.
Further, the Snapdragon 810 processor is capable of delivering high-definition images, 4K video recording support and ultra-high resolution playback. These features thus make it perfectly suited for usage in applications that involve intricate 3-D mapping.
In addition, Qualcomm's Snapdragon 810 processor packs in Adreno 430 GPU, which is designed to provide high-speed responsiveness for a real-world mobile gaming experience and is also power efficient.
Thus, with its Snapdragon 810 processor, Qualcomm aims to assist Project Tango in bringing realistic 3D gaming experiences, in-house navigation, as well as the most advanced visual experiences to its customers by means of superior depth-sensing technology on mobile devices.
Meanwhile, Qualcomm's latest chipsets for WiFi, RF360, multimode 3G and 4G LTE from its flagship Snapdragon platform have been doing extremely well. During the second quarter of fiscal 2015, Qualcomm shipped approximately 233 million CDMA-based MSM chipsets, up 24% year over year. Also, consistent and improving trends in smartphone demand, especially in the emerging countries, particularly bode well for the company's long-term growth.
However, Qualcomm has lowered its financial outlook for fiscal 2015 for the second time. The current guidance for total revenue stands in the range of $25-$27 billion compared with the prior guidance of $26.3-$28 billion. The revised non-GAAP EPS is projected within the range of $4.60-$5.00, lower than the prior guidance of $4.85-$5.05.
The revised guidance takes into account lower volumes from the Snapdragon platform as well as intensified competition in the Chinese market.
Qualcomm currently carries a Zacks Rank #4 (Sell).
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