Qualcomm Is shocked By Samsung

The management of Qualcomm has suffered from the chip utilization decision of Samsung, as the investors have also been discouraged

The American digital chip-manufacturer, Qualcomm, has suffered from a huge shock as the South Korean phone manufacturer, Samsung, has refused to employ its processor chip in the newly pioneered Galaxy S6 smart phone. Qualcomm news reported that the Korean company has decided to employ its own silicon chips in the latest designed phone. It is not the first time that this corporate giant has decided to favor its own chips as it is currently utilizing its advance phone chips in some versions of the Galaxy S6 phone.

The chip producer dominates the field of phone chips, as it is the market leader of 4G Long Term Evolution technology. However, the cellphone company is expected to replace the American chips with Samsung Exynos Application processor and Samsung Shanon 333. These processors would benefit the phone users. Some of its previous models had been powered by the Snapdragon processor, which included an application processor and cellular modem.

Qualcomm breaking news affirms that the relations between the businesses have been quite controversial, as a research firm confirmed the use of a cellular modem in one of the versions of Samsung Galaxy S6. This finding shocked the digital world, which believes that Qualcomm is the major supplier of modems to the phone makers.

The decision of the Korean company has adversely affected the financial position of the American company as it has decreased its revenue and earnings estimates for its full financial year. The decline of these financial figures is sufficient to highlight the importance of supplying processors to Samsung. The semiconductor producer would still supply modems to a number of Galaxy S6 phones worldwide. The corporation is expected to compensate the losses through its deliveries of digital modems to the phones.

Qualcomm news today stated that the mobile business of the Korean organization had been adversely affected by the progress of Apple and Chinese Android phone makers. The chip utilization decision would improve the profitability of the manufacturer, as its sourcing costs would decline. The Korean company’s decision has discouraged the investors of the other company, as the price of its shares has decreased by 21%. The price of its stock has decreased down by 8% this year. Financial experts have also downgraded the shares of the firm.

Various market analysts and experts have provided mixed opinions on this news. Now it is yet to be seen that to what extent does the American producer is able to play its role in ensuring that it is able to recapture the semiconductor market.