Will Qualcomm Make a Comeback in 2016?QCOM) is finally ready to make a comeback this year. Qualcomm has been beaten down by investors due to its struggles, but it looks like now is the perfect opportunity for investors to buy the stock.
Qualcomm was badly hurt in 2015 mainly due to the reason that the company lost its spot in Samsung’s Galaxy S6 and Galaxy S6 Edge. Samsung decided to do so because of the poor reports regarding Qualcomm’s Snapdragon 810 processor. Reports of overheating inundated the chip, and however it was powered into several handsets, other dealers went in a different path.
Since the launch of Galaxy S2, Samsung’s devices were powered by the company’s processors and modem in all of its flagship smartphones.
After that, however, the company has decelerated, mislaying about one-quarter of its entire value over the past two years, with major portion of that injury looming in 2015. The situation began to get worse when reports regarding Samsung moving away from Qualcomm were confirmed.
Keeping in mind Samsung’s size, some analyst downgraded Qualcomm and rest started to fear the worst. Other major companies also decided to use lower-end chips instead of Snapdragon 810. Numerous reports trailed, and Qualcomm finally finished the year down more than 30 percent.
However, it was just a bad past story, and now Qualcomm is back with bang. Qualcomm has made many changes in its new processor—Snapdragon 820—to overcome the flaws reported in Snapdragon 810. Qualcomm shared that this new processor is more efficient and powerful than its previous processor, and Galaxy S7 is not the only device to use this processor. Qualcomm’s Snapdragon 820 is also used in LG’s G5 as well as in Xiaomi Mi 5.
Qualcomm’s shares have surged more than 20 percent in February, but could move even higher if the Galaxy S7 sells aggressively. However, if the company could not profit from Galaxy S7, then it will definitely profit from its 820-equipped rivals. Qualcomm has successfully managed its chip business this year and is performing well as compared to previous year.
Published on Mar 18, 2016By Yaggyaseni Mittra