The fabless chipmaker of cellular base band and applications processors is anticipated to gain strong growth in the middle of rising demand for super-fast smartphones and tablets.
Korea is offering a big boon for Qualcomm as the San Diego-headquartered outfit is selling patented chip modems to main carriers SK Telecom and KT.
An industry executive said, "Qualcomm remains bullish on the Korean market. While Korea isn't that big a market in terms of business size, it is the leader to consistently put super-fast wireless technologies on high-end devices .
Korea has up to now been considered as a good test bed in promising technologies. The local telecommunications industry is shifting towards LTE-Advanced (A) wireless technology as LTE-A is much faster than LTE. Samsung and LG Electronics will roll out smartphones supporting LTE-A carrier aggregation (CA).
Carrier aggregation refers to the practice of combining multiple channels to get better total device bandwidth. North America is not prepared to broadly accept LTE-A technology. The successful launches of LTE-A products could be a good reference for major Chinese and American mobile carriers.
SK Telecom, LG Uplus and KT are challenging to widen their LTE-A services across the country. SK Telecom was the first local carrier that began offering its LTE-A band for Samsung Electronics' Galaxy S5 mobile phone.
The important point is that Qualcomm's Snapdragon 805 processor and its Gobi 9X35 modem are crucial parts for LTE-A smartphones.
Samsung said that its S5 LTE-A smartphone also supports quad HD.
SK Telecom said it aims to complete the construction of an LTE-A network by the end of the year end with download speeds of up to 225Mbps.
It emphasized it is mulling the likelihood to initiate 300Mbps technology within the year.
Officials stated that without Qualcomm solutions, it is impossible for Korean carriers to deploy 300Mbps technology.
Another official said, "Korea is the first to commercialize the LTE Cat 6 smartphone and Qualcomm's influence on the Korean market will grow as all local carriers are working on developing 300Mbps. Qualcomm will remain the only provider that can meet such ambitious demand by Korean carriers .
Murthy Renduchintala, executive vice president at Qualcomm Technologies, in a statement said, "Consumers will now have the ability to more easily capture and share stunning 4K video while enjoying gaming that brings console-quality experiences to the smartphone .
The official said, "The interesting point is that Qualcomm emerges as a winner as a new order prevails in the mobile industry by shifting its focus to mobile-focused systems. Intel was too late to tide over the new market paradigm. Intel's mobile products have technological problems such as stability. Qualcomm systems are being used in premium products, while Intel will be used in mid-tier and budget ones