Thread regarding Qualcomm Inc. layoffs

Squeeze

This is not surprising to me at all. I have been predicting this for awhile now. Especially when there was a change of guard from Jacobs to Mollenkopf. Mollenkopf came from QCT, so it's not surprising that he's focused on chip.

I've also been saying don't count out the 800 lb gorilla in the room (Intel). A couple years ago, people just laugh at me, but just look at where they are today. At IFA this year, most of the tablets that were announced were based on Intel, not QCOM. I think QCOM is being squeezed from the top by INTC and from the bottom by MediaTek. They're walking a pretty tight rope. They don't have the cash cow of server chip like Intel or the cheap labor like MediaTek. It will be interesting to see how this play out in the next few years.

by Anonymous52741
| 550 views | | 4 replies (last December 12, 2014) | Reply
Post ID: @OP+z1K4h3F
Comment! It's anonymous!

4 replies (most recent on top)

Intel has nothing to offer. They have a bad track record of investing in technologies too late or ones that never take off. Who wants to buy $1500 Yoga tablets today? Where is WiMax now? Top end of mobile is saturated in the US. Intel has less cash reserves than QC and their burn rate is higher.

MediaTek just lost their biggest customer in China because their chips are so crappy.

by Anonymous52809
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Post ID: @FCm+z1K4h3F

Many people are overlooking the complexity of the competitive landscape in China. The squeeze is on all three big players, Qualcomm, Mediatek and Intel, which will come from a large number of smaller players, like Hisilicon, Spreadrum, Allwinner, Rockchip, Marvell, etc. It is like a lion defending its catch against a pack of hyena. The carnage will start after China dismantles Qualcomm’s licensing scheme, and the punishment is coming soon. Without the licensing backing, Qualcomm is just another low margin chip company. Qualcomm will be slugging it out in the trenches. When that day comes, we will see layoffs in thousands.

by Anonymous52784
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Post ID: @uiS+z1K4h3F

Right, blame it on Mollenkopf when Jacobs is the main culprit here

by Anonymous52752
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Post ID: @yz8+z1K4h3F

Let's put this in perspective.

They acquired Atheros. They recently are acquiring/acquired CSR.... Both do connectivity in their respective areas huge overlaps..

This was not a surprise..At least not to the ones in the industry... QC is probably moving away from anything other than the chip business. They are getting a lot of competition in China from local players and from MediaTek...And, unlike the US markets, cell phone market is extremely cut-throat... Things such as media flo/etc they will not be focusing on under the new management... This is peanuts relative to the bigger scheme of things..

Another chip company a few months ago abandoned their mobile chip business/LTE group until after they figured out they can't make money in that area...A few hundred people were RIF'ed for that too....

The good news is, Intel is hiring in San Diego for mobile tech (again...3rd time is a charm)... And they have a lot of money to burn through... I think Intel lost $1billion alone in their mobile unit last quarter..And they will continue to throw money trying to build that practice up...Because they have no choice....

The three leg race will end up being Qualcomm versus MediaTek versus Intel....

by Anonymous52742
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Post ID: @TmS+z1K4h3F

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