Qualcomm (NASDAQ:QCOM) manufactures chipsets that are used in mobile phones and notebooks to provide voice modulation, internet access, data storage and data-processing capabilities.
Qualcomm’s Snapdragon chipset has gained traction by supplying the chips for Google’s (NASDAQ:GOOG) Nexus One as well as phones by Sony Ericsson and LG. Qualcomm recently announced that it was working with Microsoft and phone manufacturers to enable Snapdragon-powered mobiles phones that run the new Windows Phone 7 operating system.
Below we explain how Qualcomm’s stock will benefit from higher Snapdragon adoption.
Qualcomm Market Share Declines Slowed by Nexus One and Windows Phone 7
We believe Google will be able to sell around 5 million Nexus One phones in 2010, which amounts to a market share of 0.4% in the global mobile phone market. Phones that run Microsoft’s new Windows Phone 7 operating system are not yet available to consumers and are slated to be introduced during the 2010 holiday season.
We estimate that Qualcomm’s market share in the CDMA chipsets market was 68% in 2009, but could decline to around 61% by the end of Trefis forecast period. However, if the Nexus One and Windows Phone 7 based phones become a success, Qualcomm market share declines could be less than expected.
You can modify our forecast for CDMA chipset market share below to see how Qualcomm’s stock could be impacted if the company’s chipset market share were to decline less than we forecast because of Nexus One and Windows Phone 7.
For additional analysis and forecasts, here is our complete model for Qualcomm’s stock.
