The recent announcement of snapdragon chipset architecture clearly reflects Qualcomm’s eye on the emerging markets. In its survey report on PC/handset vendors, JP Morgan unveils Qualcomm’s clear intention to grab a dominant market share in the netbook segment.
The report in JP Morgan’s newsletter suggests that Qualcomm’s Snapdragon (8 series-chipset) has been managing to tighten its grip over both handset and PC companies.
The report also suggests that Qualcomm’s Snapdragon would actually help the handset companies to step into netbook sphere.
The Snapdragon platform comes with chipsets with features like a custom gigahertz microprocessor core paired with the company's sixth-generation DSP core running at 600MHz dedicated to applications processing. Among the other features, it includes integrated cellular broadband as well as support for Wi-Fi, Bluetooth and mobile TV; high definition video recording and playback; up to WXGA resolution (1280×768); assisted-GPS; and hardware-accelerated 3D graphics.
This could well turn out to be an alternative to PCs in an effort to spread Internet access over a range of devices that could connect to TVs and computer monitors.
The company has earlier unveiled its big plans for the Snapdragon platform as it blends the best of the smartphone and notebook computing categories to deliver on the promise of mobile Internet. Features like low-power operation, all-day battery life, operating systems support like Microsoft Windows Mobile, Android, and a number of Linux-based operating systems.
Qualcomm is also positioning Snapdragon as delivering power-efficient computing, immersive multimedia and comprehensive connectivity.
Major device manufacturers - High Tech Computer (HTC), Inventec, LG Electronics, Acer, Asustek Computer, C-motech, Compal Electronics, Wistron, Foxconn International Holdings (FIH), Quanta Computer, Samsung Electronics and Toshiba - are developing more than 30 devices using snapdragon.
The first Snapdragon devices are expected to be launched by customers in the first half of next year, and that according to independent industry research, this market segment is forecasted to grow at a compound annual growth rate (CAGR) of more than 80% over the next several years.
If QCOM’s entry on netbook or in Mobile Internet Devices turns out to be successful, this could mean a sizable CPU opportunity for foundries, especially Taiwan Semiconductor Manufacturing Company (TSMC).
TSMC has announced its fourth-quarter revenue expectations to be between NT$63-65 billion (US$1.9 billion), 8-9% lower than the previous expectation of between NT$69-71 billion. The Foundry’s forecast could well be a respite amid the global economic downturn though the profit margin is forecasted to fall between 30-32%. X