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Qualcomm’s Revenue Affected By Note 7 Debacle

1it enterpriseQualcomm expects other smartphone manufacturers to fill the void that is created by the Samsung’s Galaxy Note 7 debacle. Executives at Qualcomm said during an earnings call on Wednesday that the influence of the debacle is small but will continue until the first quarter of 2017. Sales of Note 7 are not as big as the Galaxy S7 and S7 Edge. Steve Mollenkopf, CEO of Qualcomm said other device manufacturers can release high-end devices with Snapdragon chips to replace Note 7. That will compensate for the loss. He also added Samsung will replace internally the Note 7, but for all types of scenarios, Qualcomm is prepared. The last year flaw in one of the old chip used for Samsung Galaxy S6 has created more rigidity with the executives from Qualcomm than the Note 7 debacle.


As Samsung dropped the use of Snapdragon 810 chip to be used in the S6 due to heating issues, Qualcomm’s overall revenue and chip sale were affected largely. To recover from this problem Qualcomm has increased the speed of the release of the 810 successors i.e. 820 which was incorporated into Note 7. Qualcomm executives said the impact will somewhat be absorbed by the company’s chips that are doing good business in the other mid-range and high-range smartphones.


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