That's what people are telling me in the know. That Apple had negotiated a deal with Q that there is virtually no royalty payments, only modem sales cost. If so, the more Apple takes marketshare away from android, the worse things get.
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QC is getting attacked from all directions( Plummeting royalties,high,mid,low tear chips), Thinks really looking bleak.
Looking at this thread, Q is in free fall; JANA cutting costs measure is just the tip of the iceberg. Once Q is split up in its over.
Looking at this thread, Q is in free fall; JANA cutting costs measure is just the tip of the iceberg. Once Q is split up in its over.
Looking at this thread, Q is in free fall; JANA cutting costs measure is just the tip of the iceberg. Once Q is split up in its over.
BTW, SM and team was very handsomely rewarded for making ATHR deal and its "Successful" integration in to QCOM.
Anonymous124754/Anonymous124746 : Chinese companies taking over high end market with new goog os and S820 is too big of a dream and not happening any time soon. Best scenario I see is we get slot in S7 and it regain some of its share back from iphone but I am concerned that samsung would have squeezed us to death on S820 pricing as now they have their own decent solution and we had S810 fiasco.It may be some low margin deal in exchange of using their fabs..I think we are in deep shit for at least next few years.
Anonymous124746, Imho, the best scenario would be two things (1) Google M release being a killer O/S that would win back some of the marketshare and (2) a Xiaomi, Huawei, over Zte overtaking Samsung on the Android market. It is unlikely Samsung will switch back to a Snapdragon, and they will continue to push for their own LTE modem too. So we are better off if we one of our chinese customers overtakes and brings down Samsung. As far as regaining marketshare from apple, that has more to do with Google's Android O/S (and the upcoming M release) more than any phone OEM. As you can see, neither of these are within Q's control. The only thing I think the Q could do is make the best SOC platform by combining the best LTE modem with the best app processor AND the best connectivity solution. But, Q bought the wrong connectivity companies. Neither Atheros or CSR are #1...Broadcom is. Q should have bought Broadcom's connectivity business instead of Atheros or CSR. And if Avago does sell Broadcom's connectivity business, it would probably be better if Q bought it versus some other competitor like Samsung or Intel.. Otherwise, Q's in deep shit.
So what is best possible scenario for us? S820 gets slot in S7 regain it's market share Vs apple? Server,IoT or any other next potential revenue sources seems too far away.
Looks like in Q4/Q1'16 QCOM will have lot of pressure, suddenly big hit on royalty and high end chip volume.Things looking very scary to me.
The future looks bleak as Apple and Samsung have elected to go in-house via custom ARM. Snapdragon has managed to bloat to size where Intel is now fully vested in taking away market share. Patent trolling can only get you so far - eventually you have to design something amazing or you have to know your limitations and get out of the IoT (car,medical, living room) and not grow into a mammoth 50 building company full of corruption.
I heard similar to what OP mentioned, This the he new deal Apple negotiated with Q by threatening to go other vendor ( they don't need leading modem to sell their devices)for iphone7, I think it's some fix price/unit kinda deal much lower than what Q get today. Q will be making even thinner margins from next generation idevices...Apple is squeezing all vendors....
The big $$$ is in the apps processor (I.e Snap Drogon) rather than the modem. Apple does not use Snap Dragon and Apple is gaining market share over vendors that do use Snap Dragon. So that means less money for Qualcomm. To make matters worse Samsung stopped using Snap Dragon. Another possible issue for Qualcomm is if Apple stops using Qualcomm's modem. That is even less money for QCOM. Add to that competition from Chinese Apps vendors such as Mediatek and it is clear that Qualcomm's market is getting squeezed from every direction.
what i know is Apple pay the royalty not based on the market price of iphone，instead it pay the royalty on the cost of the phone that is manufatured from foxconn. However for other phone manufactures such as xiaomi and zte， they dont have such deal with q. that is one of the reason chinese gov fined q