Qualcomm Inc. (QCOM - Free Report) , the world’s leading chipset maker for mobile handsets, has decided to consolidate its position in the Vietnam market as the smartphone market in these emerging nations is growing by leaps and bounds.
Higher proliferation of smartphones and tablets, coupled with increased deployment of 3G network services in the country, has propelled demand for faster data speed and 3G-based devices. Hence, the demand for Qualcomm chipsets is on the rise as it improves the smartphone performance with high clock speed, better graphics and more battery life.
In a bid to gain market traction in an emerging nation like Vietnam, Qualcomm is presently partnering with one of Vietnam's leading telecom carrier, FPT Group, to launch the country’s first local smartphone priced at $215. Going forward, Qualcomm plans to introduce low-priced smartphones to enhance affordability. The phones will be priced at around $50 and are expected to drive sales in Vietnam.
In the recently concluded quarter, Qualcomm shipped around 182 million CDMA-based MSM chipsets, up 17% year over year. This figure was far better than the company’s guidance of a mid-point of 173 million. The average selling price of mobile handsets with an in-built Qualcomm chipset was around $224-$230, during this quarter.
Currently, Qualcomm carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks to consider in the semiconductor industry are Texas Instruments Inc. (TXN - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Broadcom Corp. . These companies have beaten the Zacks Consensus Estimates in the most recent quarter and currently have a Zacks Rank #3 (Hold).