Qualcomm Inc. is Back in Business With Samsung Electrornics

The chip-maker is again doing business with Samsung; after going through a terrible 2015.

2015 was a rough year for chipmaker, Qualcomm Inc. as one of its biggest customer Samsung Electronics Ltd ditched the chipmaker’s Snapdragon 810 and moved towards in-house smartphone chip manufacturing.  After the Korean smartphone maker decided to stop doing business with the chipmaker, the stock of the company went down by as much as 30%. Samsung decided to part ways with Qualcomm mainly because of the performance issue of Snapdragon 810. Ever since this split happened, the company has been trying to gain back Samsung’s trust as well as business.

Qualcomm Inc. is the world’s largest chipmaker and its other venture includes LG, which has continued to do business with the chipmaker. The company stated that it’s working on Snapdragon 820 now to bring back its old customers and those which they business has lost. This new system is expected to have a number of new features including power, graphics, and connectivity and battery efficiency.

During the Mobile World Congress the company stated that the Snapdragon 820 will be used in Samsung’s latest Galaxy S7 and S7 Edge products – this conference was held earlier this week. Safe to say that the organization managed to gain back Samsung’s trust and managed to convince it to do business with the chipmaker.

Samsung is the leading manufacturer of android powered smartphones; this comeback by the Korean giant bodes well for Qualcomm on many levels. According to reports by IDC, the smartphone maker ships over 325 million smartphone each year. The chipmaker organization stated that the company’s products that are said to hit the market soon; over 100 of those will be powered by Qualcomm’s snapdragon.

The snapdragon 820 is proving to be quite beneficial for the company; and with its current progress it which just be able to get back the lost share of the business. The production of the latest chip will be ramped up in the second half of the current fiscal year.

Presently, Qualcomm stock is being traded in the market at a share price of $51.52 indicating an increase in the share price by as much as 2.18% - this increase in the stock price happened after the latest announcement. The trade session commenced with a share price of $50.00 and hitting a high of $51.66 and was seen at a low end of $49.73 and finally ending at $51.52. The market cap of the largest chipmaker in the United States is $79.92 billion. The earnings per share reported by the technology company are $3.02 with price to earnings ratio of $17.05.

After an abysmal 2015, matters are finally settling down for the company and future seems to look brighter than ever – due to the current performance, shareholders of the tech giant will be expecting better and increased returns.