Qualcomm Snapdragon Processor Now for Low-End Gadgets

Qualcomm Technologies, Inc. – the business arm of Qualcomm Inc. (QCOM) – recently announced the inclusion of Snapdragon 210 chipsets to its Snapdragon 200 series. This integration will support multi-band 3G and dual-mode 4GLTE connections for low-cost smartphones.

The 28 nm Snapdragon 210 chipset is powered with 1.1 GHz quad-core Cortex-A7 CPU, Adreno 304 GPU and RF360 front end solutions. It is capable of supporting up to Category 4 data rates at 150 Mbps with 2×10 MHz Carrier Aggregation and dual-SIM requirements.

Moreover, the chipsets offer better resolution, faster data speed and enhanced battery life. Meanwhile, the new chipsets are expected to be shipped from the first half of 2015. Notably, Qualcomm Reference Design (QRD) version of the Snapdragon 210 processor is also available in tablet configurations.

Increasing availability of low-cost smartphones and tablets coupled with aggressive rollout of 3G/4GLTE technology across emerging nations like China and India have impelled Qualcomm to launch chipsets which can be easily integrated into smart devices. Moreover, these countries have price sensitive customers who use different spectrum bands for 3G/4GLTE technology support.

Thus, Qualcomm latest Snapdragon 210 processor launch is a strategic move by the company to capitalize on the existing opportunity as well as to gain significant market traction in the low tier smartphone segment. Moreover, it will help Qualcomm counter competition from Mediatek, which is also gaining significant traction in the lucrative Chinese market.

Meanwhile, in the recently concluded third quarter of fiscal 2014, Qualcomm shipped nearly 225 million CDMA-based MSM chipsets, up 31% year over year. Revenue wise, the company held the top spot in 2013 with more than 60% of the LTE market share. Thus, we believe that the extension of Snapdragon 210 processor to low-end devices will help the company maintain its dominant position across all segments (lower, middle and upper tier) going forward.

Currently, Qualcomm carries a Zacks Rank #3 (Hold).

Stocks That Warrant a Look

Other better-ranked stocks in the sector which are worth a look include Aruba Networks, Inc. (ARUN), NVIDIA Corporation (NVDA) and DragonWave Inc. (DRWI). All three have a Zacks Rank #2 (Buy).