QUALCOMM, Inc. (QCOM)’s Only Hope Snapdragon 820

Snapdragon 810 was QUALCOMM, Inc. (NASDAQ:QCOM) flagship processor until overheating concerns distorted its reputation among handset makers. Samsung was the first to deal the company a major blow after it opted to use its own Exynos processor. Facing the threat of losing its reputation and big deals in the sector the chip giant is back, this time with Snapdragon 820.

Improved Computing Power

Snapdragon 820 is built on the 14-nanometer process. The new processor promises to provide twice as much computing power than its predecessor. QUALCOMM, Inc. (NASDAQ:QCOM) has initiated a string of changes to the chip’s graphics with the Adreno 530 promising a 40% boost.

The Kyro processor comes with an LTE mode that guarantees Category 12 network speeds able to clock 600Mbps download speeds and 150Mbps upload speeds. Wi-Fi support on the chip has also received a boost and supports both 80211ad and 802.11ac 2×2 MU-MIMO standards guaranteeing two to three times improved router speeds.

The biggest improvement according to QUALCOMM, Inc. (NASDAQ:QCOM) is the fact that Snapdragon 820 becomes the first commercial chip able to work with LTE-U. What this means is that the chip will be able to access and support both licensed and unlicensed wireless spectrum for mobile broadband.

Improved Power Efficiency

Having faced overheating issues with the Snapdragon 810 which consumed too much power, Qualcomm promises the highest level of power efficiency with the new chip. Snapdragon 820 comes with Quick Charge 3.0 technology, which is 38% power efficient.

Qualcomm big task at the moment is convincing handset makers why they should sign deals with it for the new chip. A deal from Samsung looks unlikely at the moment as the Korean company already produces its own chips. Huawei has also announced its own ‘supper chip’ that further reduces the number of potential partners.

Xiaomi and Lenovo have yet to make developments in the chip business and could act as initial targets. The fact that they are yet to reach cross-licensing patent agreements with QUALCOMM, Inc. (NASDAQ:QCOM) continues to raise more questions. The two currently account for nearly double of the Korean company revenues in the chip business.

Attention now shifts to the Consumer Electronics Show in January where it will become clear whether QUALCOMM, Inc. (NASDAQ:QCOM) is truly back in business.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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