Several financial media over the weekend quoted sources as saying that the poor performance on Wall Street made Qualcomm a potential acquisition target for companies such as Broadcom.
In the past 5 years, Qualcomm, Intel, Broadcom and other companies stock price changes
During this period, aggressive investors have also called for spin-off of Qualcomm.
Over the years, Qualcomm has been on Wall Street as a dedication to meet the expectations of long-term investors: the rapid growth of revenue and profits. One obvious reason is: QUALCOMM in the right time to do the right business - wireless technology - to benefit from a Yet another trend in mobile communications, Qualcomm's innovative products become industry standards and become the only company to 'bill' almost any smartphone vendor worldwide.
This is the reason why the operating profit margin of Qualcomm has been very high in the recent 20 years.
However, in the past 5 years, as the revenue and profit growth slowed down, operating profit margin was squeezed, Qualcomm's magic slowly faded.
Qualcomm's primary reason for this is the competition from MediaTek and Samsung-Samsung using their own chips in handsets, with many handset makers buying MediaTek's affordable handset chips and being fined nearly $ 1 billion by Chinese antitrust authorities After that, Qualcomm had troubles in the patent licensing business in China - and its largest market.
The subsequent mass layoffs made Qualcomm worse, leaving it with the talent it needs to compete with its rivals in a rapidly changing market.
Qualcomm is also facing more serious problems.Golton failed to develop the 'next generation of important technology', in terms of technology far more than competitors, in order to collect royalties to establish a new 'toll station'.
Therefore, Qualcomm's good days in Wall Street have come to an end, according to the current market capitalization, Qualcomm can easily be acquired or spin-off.