Qualcomm's Snapdragon woes mount as a 'major customer' defects

Qualcomm's Snapdragon 810 has been dropped from a 'flagship device'

Qualcomm has hyped up its 64-bit Snapdragon 810 as the most advanced mobile processor on the market, but its exclusion from an upcoming "flagship device" is causing it some financial grief.

On Wednesday, Qualcomm warned that its chip division will haul in less revenue than expected in the second half of the year, in part because the 810 "will not be in the upcoming design cycle of a large customer's flagship device," Qualcomm said.

That customer could be Samsung, which reportedly dropped the 810 from its upcoming Galaxy S6 smartphone because of overheating issues.

Samsung uses an older Snapdragon chip and its own Exynos processor in the Galaxy S5. Unlike Snapdragon, the Exynos part lacks an integrated modem.

The Snapdragon 810 is considered an advanced chip for its ability to render 4K video and support LP-DDR4 memory and the latest wireless technologies. But it's struggling a bit nevertheless.

Another issue, Qualcomm said, is that there's been a shift in market share among the top device makers, reducing its opportunity to sell Snapdragon chips and skewing sales toward modem parts. It also blamed its lowered forecast on heightened competition in China.

Still, Qualcomm's quarterly earnings reported Wednesday looked healthy. Its revenue was $7.1 billion, up 7 percent from a year earlier, and profit was $2 billion, up 5 percent.

Qualcomm recently settled a dispute with a licensee in China. But it's still being investigated by China's National Development and Reform Commission, which accuses Qualcomm of abusing its dominance to overcharge device makers in the country.

Qualcomm's shares were trading 8 percent lower in the after-hours stock markets Wednesday, after ending the regular trading day at $70.99.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultsqualcomm

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?