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The 5G Mobile Experience Signage is presented at the Qualcomm Inc. booth at the Mobile World Congress in Shanghai, Shanghai, China on Thursday, June 28, 2018. Photographer: Qilai Shen / Bloomberg
Qualcomm introduced a smartwatch chipset called Snapdragon Wear 3100 at an event held on Monday, marking its first major smartwatch chip launch over two years. The chip, which is based on a new architecture, will be key to the growth of Qualcomm in the market for portable devices, because the company is looking for new ways of expansion given its slowdown in smart SoC sales. The company said it expects $ 1 billion worth of IoT and Wearable chips this year. Below we examine what the new chipset could mean for Qualcomm.
Check out our interactive dashboard analysis on Qualcomm expected performance in 2018. You can modify the key drivers to get your own earnings per share and company earnings estimates for the year.
Energy efficiency will be the point of sale of the new chipset
The new chip will target smartwatches running Google's Wear OS software and offer a new architecture with two processors. Unlike the company's previous chips, which were actually derived from smartphone chips, the Wear 3100 is designed for notebooks and will focus on use cases such as heart rate monitoring and step tracking. The main processor, based on an ARM design, will have the processing power needed to run full applications, while a secondary processor will run a simpler operating system that only handles a few tasks while consuming 20 times less energy than the main processor. . Qualcomm indicated that portable devices powered by these chips could last more than a week or more if they did not run applications. This will allow smartwatches to present screens always on, which will give them the impression of looking like ordinary watches.
Qualcomm's success can be linked to the success of Google's ecosystem
The smartwatch market is growing rapidly, increasing by about 37% year-on-year in the second quarter of 2018, according to a Counterpoint report. In comparison, the smartphone market fell by 1.8% over the same period. However, the smartwatch market is highly fragmented and the share of smartwatches running Google software (to which Qualcomm chips mainly address) has decreased, reaching 7% in the second quarter. In comparison, Apple's operating system has a 41% share. The low attraction of Google in the smartwatch market is due to the weakness of the company's software, the weak integration of the main features of the smartphone and the fragmented nature of the Android ecosystem. As Google seeks to make its portable platform more intuitive and easier to use through software updates, competition from readers running proprietary software and chipsets is also increasing. For example, Apple is expected to unveil its first completely redesigned Apple watch this week, while Fitbit is also enjoying some popularity with its new Versa smartwatch.
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The 5G Mobile Experience Signage is presented at the Qualcomm Inc. booth at the Mobile World Congress in Shanghai, Shanghai, China on Thursday, June 28, 2018. Photographer: Qilai Shen / Bloomberg
Qualcomm introduced a smartwatch chipset called Snapdragon Wear 3100 at an event held on Monday, marking its first major smartwatch chip launch over two years. The chip, which is based on a new architecture, will be key to the growth of Qualcomm in the market for portable devices, because the company is looking for new ways of expansion given its slowdown in smart SoC sales. The company said it expects $ 1 billion worth of IoT and Wearable chips this year. Below we examine what the new chipset could mean for Qualcomm.
Check out our interactive dashboard analysis on Qualcomm expected performance in 2018. You can modify the key drivers to get your own earnings per share and company earnings estimates for the year.
Energy efficiency will be the point of sale of the new chipset
The new chip will target smartwatches running Google's Wear OS software and offer a new architecture with two processors. Unlike the company's previous chips, which were actually derived from smartphone chips, the Wear 3100 is designed for notebooks and will focus on use cases such as heart rate monitoring and step tracking. The main processor, based on an ARM design, will have the processing power needed to run full applications, while a secondary processor will run a simpler operating system that only handles a few tasks while consuming 20 times less energy than the main processor. . Qualcomm indicated that portable devices powered by these chips could last more than a week or more if they did not run applications. This will allow smartwatches to present screens always on, which will give them the impression of looking like ordinary watches.
Qualcomm's success can be linked to the success of Google's ecosystem
The smartwatch market is growing rapidly, rising about 37% from one year to the next in the second quarter of 2018, according to a Counterpoint report. In comparison, the smartphone market fell by 1.8% over the same period. However, the smartwatch market is highly fragmented and the share of smartwatches running Google software (to which Qualcomm chips mainly address) has decreased, reaching 7% in the second quarter. In comparison, Apple's operating system has a 41% share. The low attraction of Google in the smartwatch market is due to the weakness of the company's software, the weak integration of the main features of the smartphone and the fragmented nature of the Android ecosystem. As Google seeks to make its portable platform more intuitive and easier to use through software updates, competition from readers running proprietary software and chipsets is also increasing. For example, Apple is expected to unveil its first completely redesigned Apple watch this week, while Fitbit is also enjoying some popularity with its new Versa smartwatch.
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