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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: waitwatchwander who wrote (196861)	12/9/2025 11:19:26 AM
From: Jim Mullens	Read Replies (1) \| Respond to of 196996

www, re: QCOM as own OEM........................................................ Gemini thinks that idea beyond Snapdragon Insiders (community) is unlikely >>>>>>>>>>>>> Good to see several other folks on this thread begin to use AI in their posts. My comment was in response to Zax’s prior post some 5 years prior. I probably should have conditioned my response with...”...if more major OEMs started doing their own processors.... We’ve seen rumors floated that Xiaomi was headed in that direction, in addition to Samsung. “............thought if more OEMs started doing their own processors QCOM might OEM its own devices....” Becoming their own OEM would be a major change to save their handset SoC business if 50% or more of their customers defected , going 100% vertical. One of Copilots major challenges / concerns Channel conflict: Qualcomm’s current OEM partners (Samsung, Xiaomi, OPPO, etc.) might see a Qualcomm phone as direct competition, straining relationships. My response, relations became strained when the above went vertical >>>>>>>>>>>>>>>>>>>>> Q) your comments on this >>>if two or three of QCOMs major OEM went vertical in making their own SoCs, perhaps QCOM should do likewise --- go vertical in selling its own smartphones --- perhaps using Sony or ASUS as the mfg/ distribution / marketing entity as a separate QCOM subsidiary unit . A - That’s a provocative idea — let’s break it down strategically. The Risk Qualcomm Faces OEMs going vertical: Apple already designs its own SoCs. Samsung alternates between Exynos and Snapdragon. Xiaomi, OPPO, and vivo are investing in custom silicon (ISP, AI accelerators, even full SoCs). If 2–3 major OEMs fully replace Snapdragon with in-house chips, Qualcomm’s smartphone SoC share (~26–28% in 2025) could shrink dramatically. This would erode Qualcomm’s premium-tier ASP advantage, its strongest revenue driver. The Case for Qualcomm Going Vertical Control of the stack: Owning both hardware (Snapdragon) and the end device could allow Qualcomm to showcase its technology without relying on OEM adoption. Brand leverage: Qualcomm is already a household name in tech; a “Snapdragon phone” could appeal to enthusiasts. Proof of concept: A Qualcomm-branded phone could serve as a halo product, demonstrating the full potential of Snapdragon AI, modem, camera ISP, and XR integration. Strategic hedge: If OEMs defect, Qualcomm would still have a direct consumer channel. The Challenges Channel conflict: Qualcomm’s current OEM partners (Samsung, Xiaomi, OPPO, etc.) might see a Qualcomm phone as direct competition, straining relationships. Scale & marketing: Selling smartphones requires massive distribution, carrier partnerships, and after-sales support — areas where Qualcomm has little experience. Margins: Smartphone OEM margins are thin compared to Qualcomm’s licensing and chip business. Going vertical could dilute profitability. Regulatory risk: Qualcomm’s licensing model is already under scrutiny; entering the handset market could reignite antitrust concerns. Possible Middle Ground Partnership model: Rather than a full consumer push, Qualcomm could co-brand devices with Sony, ASUS, or niche gaming brands (ROG Phone, Xperia). Reference designs: Qualcomm already builds “Snapdragon Insiders” phones with ASUS — more of these halo devices could showcase Snapdragon without alienating OEMs. Focus on XR/AI glasses: Instead of phones, Qualcomm might go vertical in new categories (AI glasses, XR headsets, automotive cockpits) where OEM ecosystems are less entrenched. My Take If multiple OEMs truly abandon Snapdragon, Qualcomm would need a hedge. But going vertical in smartphones is high-risk, low-margin, and politically sensitive given its licensing model. A smarter play might be: Expand halo/reference devices with partners like ASUS/Sony. Go vertical in emerging categories (XR, AI glasses, automotive) where Qualcomm can set the standard without alienating OEMs. Double down on premium SoC differentiation (AI, modem leadership) to keep OEMs dependent.