QUALCOMM, Inc. (NASDAQ:QCOM) it appears, is preparing for a quarter ahead, which may well see its largest consumer not using its Snapdragon 810. There are indications galore of Qualcomm not expecting the successful South Korean smartphone maker from using its in-house silicon for its flagship device.
Qualcomm’s change in expectations was indicated in its recent Q2 outlook for 2015. The company claimed that its semiconductor division has undergone several changes which will affect the outlook. Qualcomm claims that premium OEMs and mixed product have upset the share for its integrated Snapdragon processors. The demand is for modem chipsets and therefore, there is a slight askew, the statement noted.
More telling parts of the statement, noted that Snapdragon 810 processors were unlikely to be part of the design cycle of its ‘largest flagship device.’ Experts believe that this was reference to Samsung.
QUALCOMM, Inc. (NASDAQ:QCOM) admits that it will not expect Samsung to go ahead with its Snapdragon 810 processor for the Galaxy S6 phone. But other OEMs such as LG continue to use the Snapdragon 810 on its new G Flex 2 phone.
The reasons for Samsung’s likely back-tracking on the use of the processor appear to be repeated reports of overheating in mobile chips made by QUALCOMM, Inc. (NASDAQ:QCOM).
It is expected that Samsung may soon use its own processor, Exynos on the Galaxy S6. However, the processor does have its limitations with respect to speed it can deliver.
Meanwhile, experts also opine that it would not be long before Samsung would have a two-tier phone model for the Galaxy S6. One version would run on the chip it has developed, while a second version would have QUALCOMM, Inc. (NASDAQ:QCOM) redoubtful Snapdragon processor!
It is time for Samsung to reaffirm industry forecasts!