QCOM to Boost Home Device Bandwidth
In order to boost the bandwidth requirement for each home appliances, Qualcomm Atheros, Inc., which is a business arm of Qualcomm Inc. (QCOM), unveils StreamBoost technology for Wi-Fi routers and gateways.
Increased deployments of 3G/4GLTE technology along with higher usage of smartphones and tablets have completely changed the whole concept of watching TV or videos. Now users have enough options to do multiple tasks simultaneously on tablets, smarthpones as well as on PCs, hence connecting seven devices on an average to a particular network.
However, these gadget lovers have to compromise on network speed as a particular bandwidth has been allocated to these users. But Qualcomm’s new StreamBoost routers powered with VIVE 802.11ac technology offering speed up to 1.3 Gbps PHY rate of Wi-Fi capacity will mitigate this problem of slow network traffic and will ensure that each device connected to the network can make maximum usage of the bandwidth.
Alienware and D-Link Systems, Inc. will be the new clients of Qualcomm to use this new router. Moreover, VIVE 802.11ac technology-based StreamBoost routers is expected to be sold to consumers this spring at e-commerce and retail outlets in North America, Europe and Asia.
Last year, Qualcomm acquired Atheros Communications Inc., which specializes in developing Wi-Fi chips for televisions, video games, printers and other home devices. Atheros business division is currently placed under Qualcomm Technologies, Inc. (:QTL) segment. So, the acquisition of Atheros has helped Qualcomm to diversify in the consumer electronics segment and at the same time has generated revenue growth of 32% year over year, from its QTL division.
Qualcomm’s plan to diversify into home segment division will not only help the company to drive its top line but will also help them to counter stiff competition from other chipset manufacturers like NVIDIA Corporation (NVDA) and Broadcom Corporation (BRCM).
We maintain our long-term Neutral recommendation for Qualcomm Inc. Currently, it has a Zacks #3 Rank, implying a short-term (Hold) rating on the stock.
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