Qualcomm and its "large customer" have lost no love over their Snapdragon 810 breakup

Qualcomm and its
A few weeks ago, we learned that a single, unnamed "large customer" ditched the Snapdragon 810 SoC for its upcoming flagship smartphone and undermined Qualcomm's earnings expectations. Although that's a painful blow to suffer for every business, one would be wrong to picture Qualcomm dramatizing over it. In fact, a company of such posture should be expected to take the loss like a champ and continue acing the market. Which is what Q-comm seems to be doing right now!

“We don’t win every handset design with every OEM and that’s normal for us,” company VP of marketing Tim McDonough told TrustedReviews, adding that "We are proud of our products, but we have a reasonable sense of humility and realize you don’t win every one all of the time. That’s normal. If you plan for having 100 per cent of everything, you’re going to be wrong very frequently.” Words to live by, folks!

As Qualcomm and its customers are working on multiple devices simultaneously at any given moment, the company's relationships with customers "are not defined by a single handset," explained McDonaugh. So even if the chipmaker missed on one device, it still has plenty more using its products, which constitutes "a very deep relationship" and "mutual investment". We take that as a hint that the unnamed large customer will keep partnering with Qualcomm, unless the winds of change blow in a different direction.

Additionally, McDonaugh suggested that timing issues could have contributed to its customer's decision. “If you miss the timing window for a particular handset or the timing window for a particular customer, or you take too long going from geography to geography rolling it out, that can be a make or break thing for them.” It's not a secret that the first batches of TSMC-produced Snapdragon 810 chipsets had some kinks that took time to iron out, which is an especially unwelcome scenario in the case of a worked-up customer gunning to unveil not one, but possibly two complex, expensive, bet-the-house-on-them flagship smartphones as early as March. Better luck next time, Qualcomm!

UPDATE: The article was cleared of references towards a particular customer to honor Qualcomm's request.

source: TrustedReviews

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21 Comments

1. cncrim

Posts: 1590; Member since: Aug 15, 2011

Delete

6. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

Ctrl-Alt

2. cncrim

Posts: 1590; Member since: Aug 15, 2011

It can be a good thing for us after all because Samsung design the hardware and now they should know how to optimize the software. And we won't see the cluster of TouchWiz after all maybe? On top of that the update come faster?

7. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

Won't make updates come faster because they don't want to give you updates in the first place. Samsung makes no money by updating (thus extending the life of) old phones - they make money when people ditch their old phones and but new ones.

9. maherk

Posts: 7065; Member since: Feb 10, 2012

What are you smoking? S5, Note 3, Note Edge and Note 4 already update and the list will grow bigger and bigger. Hell, even the Note 2 will get updated to lollipop in the future. They are the only OEM that keep on updating their 3 year old flagships.

11. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

S5, Note Edge and Note 4 aren't old phones - they haven't quite reached the end of their shelf life. The Note 3 is selling as well. The *only* reason those phones are getting updates is to move existing inventory. Once those phones move to the back order catalog the rate of updates will crawl.

12. TyrionLannister unregistered

I have a galaxy S4 and using official 5.0.1 for 2 weeks. There are no signs of competing phones like M7 or Xperia z for lollipop. M7 has got in US but outside it's not there and Xperia z will take months if not never. I'm pleased with Samsung and if s6 is good, I'll go for it over M9.

14. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Want? You must be stupid. The carriers in the US, release updates if and when they feel like it. Every Galaxy device Samsung has made has received updates of some kind. If your carrier didn't release it to you soon enough, because they rather you buy a new phone that is a totally different thing. No computer is future proof. Also, many phones don't need updates anyways. You phone was designed to run what it came it. For Android, this means having a phone out the box that does more than any other platform, either it be Windows Phone or iOS. The best way to enjoy an update is to buy a phone that comes with it. If your phone didn't come with it, then that means you phone isn't getting everything the update has to offer. This is true of all platforms. Having updates just for the sake of having a number, yet not getting all the benefits means nothing. This is typical of iOS device. Sure older device may bet the same version number, but do they get the full package? No!. Even todays iPhone still does less than many Android release 3 years ago. All this repeating Apple BS about updates. Who needs them if you don't need them? There is no law that says you need to get an update, unless something isn't working or their are bugs and the update is to fix them.

18. g2a5b0e unregistered

This is true, but it's a delicate balance to maintain. Don't update your phones & no one will buy the next version. It's more profitable for a company to keep the updates going for a decent amount of time because it builds trust with the consumer. If the consumer is satisfied that they got their money's worth, they will come back for more.

3. theguy2345

Posts: 1216; Member since: Jun 24, 2014

About time there was something else other than snapdragon in the US. The basically had a monopoly in the US market.

8. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

How exactly is that a bad thing in this case? What is it about the current generation of snapdragons that sucks?

10. theguy2345

Posts: 1216; Member since: Jun 24, 2014

They could get lazy and stop innovating. They also don't have the most powerful chips, so this night motivate them

17. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

But they haven't stopped innovating, and they haven't shown any signs that they're thinking about it. Note also that their the preponderance of their product in the US marketplace is somewhat related to their competitiveness, but also in the hands of their customers. They sell their product to international OEMs. It's the OEMs that decide which markets will see which of the chipsets they purchase. (like the Sammy products that get Exynos in some markets, Qualcomm in others). Like any business they have been and will continue to fight for a bigger piece of the pie. So again, I don't see your problem with their dominant position in the US.

19. theguy2345

Posts: 1216; Member since: Jun 24, 2014

It's bad when most phones in the US only use one manufacturer of chipsets. And I have always wondered why OEMs always choose snapdragon for the US market.

20. cheetah2k

Posts: 2325; Member since: Jan 16, 2011

For Samsung to ditch the 810, I'm betting hands down the chip is flawed. Kinda reminds me of the Intel days, where they denied there was a major issue with their Pentium line of processors which suffered from FPU floating point erratum crashes.. Still to this day Intel deny there was an issue with it.. No doubt Qualcomm are in the same basket with the 810

4. ph00ny

Posts: 2077; Member since: May 26, 2011

TSMC, when do they ever not have "First Batch" issues? Nvidia got screwed by numerous "Yield" issues with them for many years. I wonder why Apple is coming back to Samsung eventhough TSMC is a much larger foundry than Samsung

5. medicci37

Posts: 1361; Member since: Nov 19, 2011

That's obvious. 14nm finfet

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

How about a higher percentage of usable product?

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because even though Samsung has less factories, they still have a better yield based on percentage. It doesn't matter if you can produce 1M processors a day if only 100,000 of them can be used vs someone else who may produce the same amount, but have 750,000 usable ones.

13. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Oh whatever! Qualcomm simply needs to come clean about the SnapDragon. I think they are afraid too, because if they do, then other OEM's who did use the chip could face some scrutiny from bloggers. Iam sure Samsung was perfectly happy using the SD in their phones. After all, the Exynos wasn't put in American phones due to issues with supporting our version of LTE. The chip worked to hard and cause massive battery drain. If Samsung has fixed this issue, then I see no reason why they need to use a 3rd party. The Exynos and SnapDragon in benchmarks were very close. The only real advantage the SD had was in graphics. However, I have seen the Note 4 with the Exynos 5433 in videos running side by side against the SD805 and phones with the 801 and with the necked eye I didn't see any huge difference in performance. The average user isn't going to even use more than 50%of the power in the phone. Again you have to think of the 3 main things people use phones for - email, social networking and playing music. Games like Angry Birds, and Bejeweled and Candy Crush all use just one core inside the die. Other than benchmark apps, I know of only one Android game that has ever fired up all 4 of my cores and that Need for Speed.. Samsung typically clocks their CPU's and GPU's fairly high. If they would have had to clock the SD810 low or even lower than the 805 is on he Note 4, then would it really seem like an upgrade? I mean, think if you had a V6 in your car with 360HP, and an engine guy says he has a better engine that is more efficient, yet only has 300HP. Would you really consider it better? If the SD810 had problems, then why should Samsung take a risk putting it into the S6? Considering they are already starting to have sales issues in many countries'. Bad news like this would have been really bad and lead to even less sales. The average user isn't going to care what engine is in their car, as long as the engine runs properly and the car has no issues. I see no difference than the phone. Those who know more about engines or in this case, CPU's; could say well this one is better for whatever reason. However, these type of people are a very small number. The vast majority could care less bout specs in general. They will surely be happy to know, that unlike some OEM's, this one was unwilling to use a defective art in their device.

21. diyi75

Posts: 72; Member since: Oct 30, 2013

A monopoly of any kind is bad.

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