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From: benhorseman10/5/2017 10:07:12 AM
3 Recommendations   of 140883
 
seekingalpha.com

Buy Qualcomm Before Apple Starts Paying Royalties Again.

I initially wrote about Qualcomm ( QCOM) a little over 4 months ago. I rated the chip maker a buy for two main reasons. The first was their NXP ( NXPI) acquisition. This deal is estimated to not only increase their chip business by a 40%, but also lead them into multiple brand new business areas including automotive, Internet of Things, and digital networking. The second reason was because I believed the Qualcomm's steep drop after being sued by Apple ( AAPL) was overblown.


As you can see from the chart above, the stock has fallen about 14% since my initial call. I recently revisited my thought process and my work and had to ask myself the age-old question, am I wrong or am I early? If I was wrong I need to close my position, but I have no problem with being early. This is a long-term position for me and I'm willing to continue collecting the over 4% dividend payment as I wait.

Most of this article will be about the Apple lawsuit, but I wanted to touch very quickly on the NXP acquisition. The deal is expected to be complete by the end of 2017. Besides allowing to to break into new business areas, Qualcomm will be adding about $9.5 billion in revenue and $1.9 billion in Free Cash Flow. Nothing much has changed since my previous article covering this which you can read here.

Apple is currently suing Qualcomm in the US, China, and the UK for two main reasons. The first is that Apple is claiming that a recent ruling from the Supreme Court would prohibit Qualcomm from selling it's chips while also licensing its technology at the same time. The second is that Apple claims Qualcomm is price gouging.

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To: benhorseman who wrote (138400)10/5/2017 11:14:22 AM
From: sbfm
   of 140883
 
"I wanted to touch very quickly on the NXP acquisition. The deal is expected to be complete by the end of 2017."


Anyone have any updates on the NXP deal? Has the clock restarted?

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From: Jim Mullens10/5/2017 11:15:47 AM
4 Recommendations   of 140883
 
AAPL Sewell / T-Mobile reports massive MIMO delivered 600% capacity increase.....

Hmmm, 600% increase in capacity from advances in cellular technology that QCOM & others enable by employing tens of thousands engineers (QCOM 20,000) and spending billions of dollars to invent.

And now we have AAPL’s general counsel Sewell downplaying the significance of the modem and cellular connectivity ---“...(modem)..of no special significance,..... and cellular connectitity....its not as important as it used to be...” What an imbecil / moron

Snip from 17 10 04 Bloomberg- AAPL and QCOM Billion-Dollar War Over an $18 Part

"....As Apple sees it, a cell phone modem is one of many components—and of no special significance. Sewell points out that if your cellular network is down, it’s possible to get online using Wi-Fi, which uses a different chip. Moreover, phones aren’t just phones anymore; they’re also navigational tools, digital wallets, health monitors, cameras, and more. All of those functions work with or without cell service. “Cellular connectivity is important,” he says, “but it’s not as important as it used to be.” ..."

Sewell's / AAPL's ignorance reinforces another thought-


My idea for another ad would be- “ A day without QCOM technology”, discussing Smartphone users frustrations in attempting to do common tasks without QCOM’s pioneering innovations, or those in which QCOM was at the forefront in developing / standardizing.

Examples would be use in congested / fringe areas comparing the current LTE experience with that using 2G / 3G technologies employed in both the device and network.
+ connection failures / slowness

+ handoff failures
+ music / video download times

+ streaming videos- buffering issues, etc.
+ texting failures in congested / fringe areas.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

https://www.rcrwireless.com/20171004/5g/t-mobile-huawei-massive-mimo-tag23

T-Mobile, Huawei test massive MIMO in Amsterdam

By Juan Pedro Tomás on October 4, 2017 5G, Carriers, Network Infrastructure

The Dutch telco said massive MIMO delivered 600% capacity increase

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To: sbfm who wrote (138401)10/5/2017 11:20:25 AM
From: slacker711
   of 140883
 

Nope. PJ attributed this to the amount of information that needed to be gathered but we are at 3 months and counting on the delay.

ec.europa.eu


Slacker

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From: Jim Mullens10/5/2017 11:46:14 AM
   of 140883
 
What’s holding back the IoT?....................................................................

Martha DeGrasse 2017-10-04

Martha DeGrasseOctober 4, 2017 • 415

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The internet of things may someday deliver a world of robots and intelligent machines that control all manner of devices, but for now, most connected devices are ultimately controlled by humans. Humans need information – we demand data, and then we want data about our data. But our capacity is limited, so if dozens of devices deliver data in different formats, we can’t make comparisons or draw conclusions. That’s why creating a consistent framework for IoT data is so important to the companies selling IoT services to enterprise customers. The nationwide wireless carriers all market IoT software platforms, as do the major radio equipment vendors, Nokia and Ericsson.

Nokia’s Jason Collins, VP for IoT marketing, compares the IoT to the internet before web browsers made data accessible and consistent. He thinks the fragmentation of IoT platforms and applications is holding back investment.

Related

These are the elements required to deploy an IoT solution

Greenwave adds AI-powered language tool, targets network providers

What is an IoT AEP, or application enablement platform?

“It has not grown … as fast as people expected and I think the reason for that is there is a fundamental structural problem in the industry,” said Collins. “We don’t have the bridge that allows one application to take advantage of multiple deployments of these machine-to-machine solutions that are going out there. The industry lacks standards, it lacks interoperability … and so what’s needed, we think, is to put layers in the architecture that essentially hide complexity at the device and connectivity and lower layers from the applications that exist at the higher layers.”

Nokia’s IoT platform, called IMPACT, includes device management, analytics, security and an IoT community to encourage collaboration. U.S. Cellular, which is using the platform to expand its IoT service, says Nokia will help the carrier offer “an intuitive connectivity portal” to customers who want to manage IoT devices on the U.S. Cellular network.

Wireless carriers are Nokia’s biggest customers, but convincing the largest ones to adopt its IoT platform could be a tough sell. Verizon Wireless and AT&T have their own IoT platforms, both of which offer many of the same features Nokia offers. These carriers know the makers of software will land higher on the IoT value chain than the providers of connectivity. AT&T and Verizon will make their IoT platforms available even to customers who don’t use their networks.

Sprint has said it is working to consolidate its IoT platform offerings, but has not said whether it will launch its own platform. In the past the carrier has worked with Aeris for its Command Center platform and has also deployed solutions using other software. T-Mobile US has partnered with Twilio and Netcracker for IoT platforms, and also offers a platform on its own called M2M Hub.

GE, Oracle, Cisco, Salesforce, IBM, Microsoft, Amazon and PTC (Thingworx) also offer IoT platforms, and there are many others as well. Competition spurs innovation and keeps prices under control, but in a brave new world like the internet of things it can also keep customers on the sidelines. Some companies will hesitate to invest in solutions that may be eclipsed by others down the road.

Right now most enterprise-level IoT solutions are highly specialized to fit the needs of a certain company or customer. IoT platforms have the potential to connect these disparate deployments and create new synergies. Companies have many choices here because carriers, equipment makers, and cloud service providers all offer IoT platforms. Over time some of these platforms may converge, and as winners emerge companies may accelerate their investments in the IoT.

https://enterpriseiotinsights.com/20171004/fundamentals/iot-platforms-tag4

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To: slacker711 who wrote (138403)10/5/2017 12:00:33 PM
From: JeffreyHF
5 Recommendations   of 140883
 
As recently as last month, Steve told an investment conference that they should not read anything into the stopping/restarting of the clock, multiple times, because it's not unusual, reassuring them that he expects the deal to close by the end of this year.

That having been said, unless the company comes to terms with the EU Competition Commission, concerning licensing and access to NXP's technologies, there's no way IMHO that this doesn't bleed into next year. Then, there's the premium they'll be required to pay, to get shareholder approval. Given the over-bid pricing of NXPI in the market today, I think they'll need to pay up into the $120-125 range, to close the deal. That's the price of a weakened QCOM, revved up chip multiples, and the need for Qualcomm to hedge their QTL pressures with product based diversification.

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From: THE WATSONYOUTH10/5/2017 4:20:57 PM
3 Recommendations   of 140883
 
eetimes.com;

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From: Jim Mullens10/5/2017 4:53:27 PM
2 Recommendations   of 140883
 
Four things to know about the AAPL-QCOM war that is silently changing your iPhone



Comment posted>>



Nice AAPL spin-..”... Qualcomm received a royalty for every iPhone sold, sometimes as high as $30 for each unit....” Actually the linked article stated according to analyst estimates QCOM’s royalties are about $10 per iPhone. The royalty could **possibly** be as high as $30 **if** QCOM did **not** calculate royalty based on the wholesale ASP **up to a royalty cap**, with consideration given for cross-licensing IP (which AAPL has little if any--- mobile wireless IP)

>>>>>

siliconbeat.com

Four things to know about the Apple-Qualcomm war that is silently changing your iPhone

By Seung Lee / October 5, 2017 at 11:16 AM

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From: DavidRG10/5/2017 8:42:56 PM
5 Recommendations   of 140883
 
DSRC vs. C-V2X: Looking to Impress the Regulators
electronicdesign.com

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From: temco210/5/2017 10:44:56 PM
1 Recommendation   of 140883
 
2 Reasons Ambarella's Turnaround Looks ShakyLoss of traction in the drone and action camera markets will hurt the chipmaker's fortunes.

Harsh Chauhan
( TechJunk13)

Oct 5, 2017 at 3:04PM

Ambarella ( NASDAQ:AMBA) investors have started losing hope of a turnaround as the chipmaker is finding it difficult to deliver growth amid stiff competition and a challenging end-market scenario. The video processing chip specialist's forward guidance was below Wall Street's expectations once again when it released its fiscal second-quarter results on Aug. 31.

This set the cat among the pigeons as it shows that Ambarella's business is on the wane. In fact, the midpoint of the company's third-quarter guidance indicates that its revenue could drop around 11% year over year. Not surprisingly, investors pressed the panic button -- sending the stock down 22% the next day -- as Ambarella's growth story now seems questionable.

IMAGE SOURCE: AMBARELLA.

Drones don't guarantee a flight to safetyDrones could have been the next big growth frontier for Ambarella, but that doesn't seem to be the case anymore. CFO George Laplante said during the conference call with analysts that the company's drone-related revenue fell last quarter because of weak demand from "tier 2" drone customers. He did not give a dollar figure. The bad news is that Ambarella's drone business doesn't look to pick up anytime soon. The company said it expects continued weak drone sales.

Laplante said the recent launch of a lower-priced Spark drone from DJI has impacted the high-end segment of the drone market where Ambarella supplies chips.

And Ambarella might be forced to lower the price of its drone chips because of rising competition. Qualcomm ( NASDAQ:QCOM), for instance, has been making big moves in the drone market with its machine learning-equipped Snapdragon Flight Drone platform.
Qualcomm's platform enables the drone to learn about its environment on the go, making decisions instantly and creating flight paths to avoid obstacles in crowded environments. This has helped the chip giant eliminate the need for global positioning system satellites, which means that the drones can be used in indoor environments where connectivity might have been an issue.
Additionally, Qualcomm is focused on making drones affordable. It believes that it can reduce 4K-camera drone prices to $300-$400 and boost the flight time concurrently, which means that Ambarella could be forced to lower prices to compete against Qualcomm's chips.

Ambarella customers are multisourcing their chipsAmbarella once enjoyed solid growth, as customers such as GoPro and DJI Innovations primarily relied on its chips for powering their drones and cameras. GoPro was once its largest customer. But weak sales of the former's action cameras and the decision to rely less on Ambarella as a supplier have hurt the chipmaker's sales tremendously.

GoPro is reportedly moving to its own system-on-a-chip in the second half of 2017, which means that Ambarella will lose its hold on the action camera market. Meanwhile, Ambarella's primary drone customer -- DJI Innovations -- seems to be multisourcing its chips as well. DJI is reportedly not using Ambarella chips in its Spark drone.

The use of non-Ambarella chips in GoPro and DJI products puts the brakes on Ambarella's growth in both the action-sports camera and the drone markets, because GoPro and DJI are leaders in these areas, respectively. More specifically, action camera sales could grow at almost 23% a year until 2021, while drone sales are expected to clock an annual growth rate of 7.6% over the same period.

Ambarella is losing access to two fast-growing markets that could have substantially boosted its business in the long run and this is dimming investor hopes of a turnaround.

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