Large Customer Of Qualcom Drops Snapdragon 810

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Dropping Of Snapdragon 810 Soc Confirmed During Company’s Earnings Call

For quite a long time, there was a rumor that Qualcomm was facing some major problems with its new Snapdragon 810 SoC, but all the company was responding with was silence. Therefore, the latest earnings call of the company confirmed the rumor and Qualcomm broke their silence by saying that a big and important customer has dropped 810. The move by the customer has led the company to cut its outlook for the fiscal year slightly, partly because of the lost business and because of fierce competition in China.

Revenue Expectation Of Qualcomm Cut Down

With the step back that the company has suffered, there has been a little calculation done on their part and the revenue expectation of the company has been cut down. While earlier it was between $26.8 and $28.8 billion, now the revenue expectation is between $26 and $28 billion. There was also “a shift in share among OEMs at the premium tier” and that has led to the selling of less SoCs and more modem chips. The shift is in part due to the huge sale of iPhone 6 and 6 Plus and Apple’s growth in China—the iPhones use Qualcomm’s modem chips, but not its SoCs.

Samsung Rumored To Be The Big Customer Of Qualcomm

While there was no information given on which customer has dropped Snapdragon 810 and also why it has been dropped, insiders said that it is Samsung that has decided to drop the chip from the forthcoming Galaxy S6 because of overheating problems. The reason for the problem may be that Qualcomm made use of off-the-shelf ARM Cortex A57 and A53 CPU cores because of pressure to go 64-bit. However, the company also said that a new Krait CPU core was being developed.