Trouble for Qualcomm as Samsung opts Exynos Chip for its Galaxy S6 Flagship

2 Feb

News source: Rahul Punyani, The Tech Portal

It’s been known for a while that Qualcomm’s top-of-the-line processors were to be fabricated to Samsung’s upcoming flagship Galaxy S6. We might need to update our knowledge on that.

Qualcomm said that it might loose a major customer’s flagship device, that we assume to be Samsung Galaxy S6. Qualcomm’s new Snapdragon 810 chip has been rumoured  to conceive overheating issues when incorporated to devices. Before these rumours could find peace, reports surfaced that Samsung might drop the idea of fabricating Snapdragon 815 chip to its upcoming flagship device and rather its own Exynos chip.

This news drastically shifted Qualcomm’s annual forecast, which it eventually had to cut by $800 million. To add up to Qualcomm’s worries, its shares slumped by some 12 with the company losing about $14 billion in market value.

Qualcomm executive Cristiano Amon, said in an interview Thursday-

We don’t see any structural problem, we don’t see anything that challenges our competitive position going forward. We had one product cycle that went well, but not as good as we hoped because we lost one design.

Qualcomm said the 810 will be used in over 60 devices coming out and will be a dominant player in the next line of high-end mobile phones and tablets. It’s already being used in the new LG G Flex 2 and Xiaomi Mi Note Pro and as said by the company, the chip is working as they expected it to.

Qualcomm plans to go back to using its own customized Krait processors for its next Snapdragon, instead of a licensed design from British chips company ARM, to make sure its offering is different than the competition.

Analysts say that such issues are curable and Qualcomm might soon get rid of it and revert the flow of the wind. Otherwise, this scenario is likely to shake Qualcomm’s dominance in the market. Samsung might unveil the Galaxy S6 during the Mobile World Congress show that is scheduled to happen in March.

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