Qualcomm expects Snapdragon sales to slow during the second half of the year

Qualcomm expects Snapdragon sales to slow during the second half of the year
Chip maker Qualcomm is expecting business to slow in the second half of this year. While discussing the reasons for this forecast, the company noted that it will have a decline in share at one large customer. We all know what that is all about. When talk first started about the Snapdragon 810 SoC overheating, Samsung decided to stuff the home-grown Exynos 7420 into the Samsung Galaxy S6 and Samsung Galaxy S6 edge in all regions. Traditionally, Sammy would use a Snapdragon chipset for its flagship phone in the U.S. and in other areas. Now that the Genie is out of the bottle, we'd expect Samsung to continue using its own chips for future versions of its flagship phone.

In addition, Qualcomm said that second half sales of Snapdragon chips will be impacted by "the increased impact of customer share shifts within the premium tier, which will reduce our sales of our integrated Snapdragon processors and skew our product mix towards modem chipsets in this tier." Another issue is whether Samsung will use a Snapdragon SoC for the Samsung Galaxy Note 5. The Snapdragon 805 is under the hood of the Samsung Galaxy Note 4 in some regions.

For Qualcomm's fiscal second quarter it shipped 233 million MSM processor chips, a 24% gain from last year's fiscal second quarter. Devices sold with Qualcomm chips inside during the three month period increased 30% to as many as 388 million units. Revenue from these sales totaled $75.8 billion, 14% higher than last year. The average selling price of these devices came to $193-$199.

For the quarter, Qualcomm took in $6.9 billion and reported net income of $1.1 billion, down 46% from last year's figure.


source: Qualcomm

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26 Comments

1. brar.arsh

Posts: 202; Member since: Sep 12, 2012

So Note 5 is coming without Snapdragon for sure..

3. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Yay!!

8. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

Can't wait for Note 5 :) Great specs and components designed and made by Samsung :)

21. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

I doubt it, my bet is that the nex Exynos (the one in the Note 5) will be an improved version of the 7420 replacing the A57 cores with A72. But it is far too early for custom cores from Samsung (you need 3 to 5 years to design your own core). So I would expect the custom cores coming in the next year for the Galaxy S7.

23. hound.master

Posts: 1044; Member since: Feb 27, 2015

Note 5 will most likely come with a SD 820 inside since Samsung it self gonna take its manufacturing plus exynos chipsets wasn't good at all till S6 and it was due to its 14nm manufacturing hope Samsung could make its own cores for its new chips and could mass product 14nm chipsets.

24. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Your post is barely understandable... But if you mean Samsung will use SD 820 Exclusively the answer is NO. They never did use Snapdragons alone, and I don't think they will now. Moreover SD 820 won't be ready till the 2016 Q1 in devices, so even the dates don't match.

26. hound.master

Posts: 1044; Member since: Feb 27, 2015

You sure i though it will be ready for 2015 Q3. And no i don't mean Samsung will use SD on note 5 only like the previous notes there will be SD ones and Exynos ones.

10. AppleCultist

Posts: 335; Member since: Feb 18, 2015

Dunno about that. Rumors are talking about a custom CPU and GPU Exynos from Samsung.

2. Commentator

Posts: 3723; Member since: Aug 16, 2011

That's what happens when your biggest client is also your biggest competitor I guess...

4. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

You think!?! I am glad Samsung is bringing the heat. I'm tired of the Snapdragon notes, I want a full Sammy samsung phone

5. Commentator

Posts: 3723; Member since: Aug 16, 2011

Or a Samsung phone with one more Samsung part in it at least.

12. AndreaWijayanti

Posts: 69; Member since: Mar 03, 2015

Yeah i want it too Samsung phone with every Samsung's part like Samsung's Camera Sensor, Samsung's Exynos Etc.

15. ibend

Posts: 6747; Member since: Sep 30, 2014

i still prefer sony's sensor camera like in S6 :P

17. singhkaran9830 unregistered

Camera sensor is responsible only for 1/3 of the camera hardware.Software processing plays a major role.

6. TheBiz

Posts: 232; Member since: Apr 13, 2015

Im waiting for LG ,Sony and HTC to ditch them too They should shift to exynos or intel the new x3, x5 & x7 soc

7. arch_angel

Posts: 1651; Member since: Feb 20, 2015

Huawei's kirin is also good, better than intel chips anyway.

13. TheBiz

Posts: 232; Member since: Apr 13, 2015

yup my bad i forgot kirin

11. kamejoko

Posts: 252; Member since: Nov 10, 2011

intel x7 only support nand emmc 4.51. mobile phone will run too slow.

20. GazWho

Posts: 7; Member since: Apr 09, 2015

LG is already working towards their own chipset.But tell me why you hate Snapdragon so much TheBiz?

22. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

You can only hope not to get a chip with intel Atom X3... They are awful chips with only support for emmc 4.51, built in 28nm, weak GPUs... should I really continue? They are just there to compete with lower clocked A53 cores. And x5/x7 is targeted to a TDP for tablets, so you won't see them in phones at least in the beginning. So if I were you I would not hope to get Intel SoCs in your phone for this and next year.http://images.anandtech.com/doci/9026/Slide%2012.pnghttp://cdn4.wccftech.com/wp-content/uploads/2015/02/Intel-Cherry-Trail-MWC-2015_Mobility-Portfolio.jpg

9. gaming64 unregistered

Snapdragon has crappy processors anyway.

14. gaara6775

Posts: 738; Member since: May 20, 2014

So you never owned a phone which had SD in it?

18. Muayyad

Posts: 240; Member since: Oct 05, 2012

Not true!

16. Chuck007

Posts: 1411; Member since: Mar 02, 2014

Good the sooner they're gone the better. Always got sick of their overheating SOCs when I was "forced" to use their chips when I didn't want to go iOS.

25. tokuzumi

Posts: 1925; Member since: Aug 27, 2009

The days of qualcomm being the alpha dog in the silicone race have come to an end (for now, anyway). Samsung and, to a lesser degree, MediaTek, will take huge bites out of their market share. This will force each manufacturer to bring their best offerings to the table, to land the big fish. Samsung will probably focus their exynos chips to their flagships, like the S and Note line. Mid and low range phones will probably be sourced to MediaTek or Qualcomm. I'll be curious to see if other manufacturers use exynos chips in future devices.

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