Qualcomm is the world’s largest mobile-chips company cut its guidance Wednesday, suggesting that Samsung won’t use its latest processor for its next Galaxy S smartphone.
Qualcomm is losing its spot in one of the industry’s marquee smartphones.
The company cut its guidance for the year on Wednesday, saying it expects a large customer to opt not to use its new Snapdragon 810 chip in its flagship device.
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The disclosure comes just days after Bloomberg reported that Samsung plans to drop the 810 and use its own Exynos chip for its next Galaxy S smartphone, which is widely expected to be unveiled at the Mobile World Congress show in March. Samsung’s decision, Bloomberg said, resulted from Samsung tests that showed the chip overheated — an alleged problem that’s been rumored about the chip in recent weeks.
Qualcomm’s report Wednesday provides a strong indication that the next Galaxy S won’t include an 810 chip, although it’s not yet clear whether Qualcomm will end up with a second-place prize by getting its modem chip in the phone instead.
Shares of Qualcomm, the world’s largest maker of mobile chips, dropped 8 percent after hours to $65.22 — below its 52-week low — despite the company beating market expectations for its fiscal first quarter, which also were reported Wednesday.
Source: Ben Fox Rubin
Image Source: Joe Pemberton