Samsung Galaxy Note7 fiasco hits Qualcomm's revenue

Qualcomm says the Note7 fiasco will continue to have a minor impact on revenue until replacement smartphones fill the void

Samsung's cancellation of the Galaxy Note7 hurt Qualcomm's chip sales, but the company expects other smartphones to fill that void.

The impact of the Note7 fiasco on the company's chip revenue is small, but will ride into the first financial quarter next year, Qualcomm executives said during an earnings call on Wednesday.

Some models of Note7 used Qualcomm's Snapdragon 820 chip. But sales of Note7 aren't as big as that of Samsung's Galaxy S7 or S7 edge, which have sold in large volumes.

Other device makers could release high-end devices with Snapdragon chips to replace Note7, which could fill the void in chip sales, said Steve Mollenkopf, CEO of Qualcomm, during the earnings call.

It's also possible that Samsung will internally replace the Note7, but Qualcomm is well positioned in all scenarios, Mollenkopf said.

Qualcomm executives didn't seem bothered by the Note7 discontinuation as much as they were last year by flaws in an old Snapdragon chip used in Samsung's Galaxy S6 smartphone. The Snapdragon 810 in the S6 had overheating issues and was dropped by Samsung, and that had a big impact on Qualcomm's chip sales and overall revenue. Qualcomm ended up speeding up the release of its successor, the Snapdragon 820, which is in Note7.

Qualcomm's chips have also been doing well in mid-tier and high-end smartphones, which should absorb some impact of the Note7 discontinuation, executives said.

The chip maker's overall fourth quarter sales totaled US$6.2 billion, growing by 13 percent compared to the same quarter last year. Net profit was $1.6 billion, growing by a whopping 51 percent.

The Snapdragon 820 and 821 are considered Qualcomm's fastest mobile chips. But they are due to be replaced next year by a next-generation Snapdragon with leading features.

The chip will be made using the 10-nanometer process, said Cristiano Amon, executive vice president, Qualcomm Technologies, during the call.

Amon didn't share the name of the next-generation Snapdragon, but users can expect a faster chip with better graphics and CPU. Qualcomm's strength is in making faster integrated modems, which can also be expected in the new Snapdragon chip.

Join the PC World newsletter!

Error: Please check your email address.

Tags samsung

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?