According to the microprocessor analyst Linley Gwennap estimated Samsung Galaxy S6 not use Qualcomm chips, resulting in Qualcomm lost about $ 2.3 billion, and the operating margin Qualcomm had a huge impact. If the Galaxy S7 re-use Qualcomm chips, equipped with Qualcomm chips on even mobile phones sold only in North America, which will also bring huge benefits Qualcomm.
Qualcomm's management said that with the company's restructuring, in 2016 before the fourth quarter, operating margin chip business will account for more than 16%. If S7 using Qualcomm chips, revenue and operating margins Qualcomm chip business will be greatly improved.
Qualcomm has a good enough reason to re-use its chips Galaxy S7. It is reported that, Snapdragon 820 chip is a very powerful system chips cohesion currently the most advanced chip technologies. And, Snapdragon 820 also uses FinFET fabrication process, a result, in the manufacturing process would not lose Snapdragon chip Samsung Exynos chip. Of course, we believe that not all Galaxy S7 models will use Qualcomm chips, after all, there are Samsung's own Exynos processors and other vendors. If S7 uses a Qualcomm chip, the new machines Galaxy Note series may also re-use Qualcomm chips.
For now, many investors Qualcomm's chip business look bad comparison. But there are many improvements Qualcomm needs to be done, its chip business will not end there. If Snapdragon 820's performance is still unsatisfactory, it's not too late for investors to query the ability of Qualcomm.