The successful semiconductor company wants to keep the legacy of unrivaled company intact.
Qualcomm Inc. is unquestionably the most powerful innovator of semiconductors for the smartphones. To keep its ground firm in the market and to be unrivaled the company announced, on Thursday, a revolutionary cellular chip that can transmit a billion bits of data in a second. The company hopes that the new invention will match the mobile users speed with today’s most advanced wired services.
The modem chip, dubbed as Snapdragon X16, will enable the consumers of smartphones and other mobile devices to download data at rates of up to 1 gigabit; the company claims. Previously, the chip manufacturer’s modem chips were offering a download speed of 600 megabits a second in addition to an upload of 150 megabits a second. Head of Qualcomm’s chip business, Cristiano Amon has labeled the new Snapdragon X16 product “an important step towards 5G.”
The $67 billion organization is authoritatively the biggest maker of processors and modem chips for mobile phones. Centered in the heart of San Diego, the company announced about its technology prior to analysts’ meeting. The organizations’ senior executives will most likely discuss strategies and plans in order to strengthen the company’s growth. The organization business is also affected by the overall decline in the sales of the smartphone along with other economic headwinds.
Over the past decade, LTE technology has been catering to the need of the fastest download speed. The advancement of the technology takes ample time as upgraded transmission equipment and new handsets are required. The new modem technology, Snapdragon X16, is supposed to be successfully ahead of LTE.
The company has claimed that only Australian carrier; Telstra Corp. offers up to 600 megabits a second download speed. According to a test carried out by PC Magazine in the year 2015, most cellular carriers in U.S provided less than 100 megabits a second which accounted for the maximum download speed. In comparison with Qualcomm the carriers have been providing far lower download speed.
An analyst at Moor Insights & Strategy, Patrick Moorhead, expressed his view point that the gigabit speed is not likely to hit the smartphone anytime soon however other communications market can be benefitted by the faster technology.
Moorhead further cited that the wireless offerings can be essential for a number of other non-mobile applications including a distribution of speedy internet to groups of access without having a cable installed. Moorhead based his opinion on the speed premises of advanced fiber-optic networks, he said, wireless offerings. He added: “I think Qualcomm has new ideas about working with telecom companies to beam data wirelessly.”
Later this month, a major trade show is scheduled in Barcelona. “Mobile World Congress” is a platform which showcases the cellular industry’s advancement. However, the San Diego, Calif. firm’s announcement came ahead the event. The expected major topic for discussion is likely to be next-generation 5G technology which, between 2018 and 2020, is likely to replace the LTE technology.
The company has forwarded the samples of the new chip while the commercial distribution of the product is more likely to be in the second half of 2016. The latter half of the year will reveal how much growth has the new technology given to the organization. At the market which closed on Friday, QUALCOMM Inc. stock stood at a price of $44.56. The 52 week range of the stock is $42 to $74.
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