qualcomm analysis
TRANSCRIPT
Qualcomm’s Analysis
The In’s and Out’s of Qualcomm: Should TUIG Sell Qualcomm?
Matthew Lowinger
QCOM
Background of
Qualcomm
• Telecommunications equipment company
• Founded in 1985 by MIT graduates
• Headquarters are in San Diego, CA
• “Invent mobile technology breakthroughs”
Products of Qualcomm
• CDMA chipsets• Snapdragon• BREW• MediaFLO
Sell Qualcomm
Competition is Everywhere
• Broadcom Corporation
• Cirrus Logic• Intel
“
”
The iPhone 7 is a negative for Qualcomm, because it could lose 20% to 25% of its
baseband chip share in the new smartphone to Intel.
BMO Capital Markets analyst Tim Long
“”
Audio chipmaker Cirrus Logic will profit from Apple's decision to remove the analog audio jack from the iPhone 7
and include digital earbuds and an adapter with the new handset…Cirrus Logic also will benefit from Apple adding a
second speaker to the iPhone 7 to give it stereo sound.
Pacific Crest Securities analyst John Vinh
QUALCOMM’S TIME IS UP
Why?
Qualcomm’s Revenue• Decreasing
Intel’s Revenue• Increasing
Why?
Qualcomm’s Revenue• Decreasing
Cirrus Logic’s Revenue• Increasing
Why?
Qualcomm’s P/E Ratio• Increasing
Broadcom’s P/E Ratio• Decreasing
Why?
• Decreasing EPS
• Increasing P/S ratio
Why?
Why?
• High P/B ratio
Why?
• Volatile cash and short term investments
