Qualcomm Technologies, Inc., the business arm of Qualcomm Inc. (QCOM - Free Report) , will supply its popular Snapdragon 800 processors to Samsung Electronics’s Galaxy S4 LTE-A.
Samsung Galaxy S4 LTE-A will be the world’s first LTE – Advanced smartphone allowing better usage of bandwidth, data speeds of up to 150 Mbps, which is twice as fast as the current LTE speed. Thus, the device supports faster video streaming. It will be available from this summer on three of the most popular Korean networks, namely, SK Telecom Co. Ltd. (SKM - Free Report) , KT and LGU+.
The existing 4GLTE-based smartphones support several LTE radio channels but can download only one channel at a time. However, the advanced smartphone from Samsung downloads multiple LTE radio channels at the same time.
Qualcomm’s Snapdragon 800 quad core chipset supports 3G/4G LTE modem with ultra HD graphics, enhanced battery life and faster clock speeds of up to 2.2 GHz per core. Therefore, it is very helpful for high-end smartphone users.
Most high-end smartphones like Sony Corp.'s (SNE - Free Report) Sony Xperia Z and Research in Motion’s (BBRY - Free Report) BlackBerry Z10 use Qualcomm’s chipsets. Qualcomm’s Snapdragon 800 quad core processors will gain traction with increased deployment of 4GLTE technology across emerging nations like India and China.
World’s largest telecom operator, China Mobile, targets to deploy nearly 200,00 TD-LTE base stations by the end of 2013. China Mobile has already selected Snapdragon and Gobi-based LTE-TD smartphones, as it runs well on such home grown networks. This will create a huge growth opportunity for the company in the upcoming quarters.
In the recently concluded second quarter, Qualcomm shipped approximately 173 million CDMA-based MSM chipsets, up 14% year over year. The company expects to maintain this trend in the next quarter.
Currently, Qualcomm carries a Zacks Rank #3 (Hold).