Qualcomm, Inc. Witness A Major Stock Decline; Might Split Up

Many believe that the only way the company could work now would be if it decides to split up both of its divisions.

News of Qualcomm, Inc. splitting up has been circling around the market for a while now, as the shares of the semiconductor company reached to one third of its value. The price of the stock of the American semiconductor company is of the same value as it was over five years ago. The investors and shareholders of the corporation are not, at all, happy with this. It has come to the point where many analysts along with investors now think that the company should split the two segments of the company which are the patent licensing and chip making segments.

The management of the American global semiconductor company at this point is trying their best to keep the company united. According to Bloomberg, the board of Qualcomm, Inc. will be holding future talks to discuss the future of the tech company whether or not the company should opt for splitting or stay put. Once these talks take place the decision will be put forth within the following week.

When talking about smartphone processors and wireless technology Qualcomm has always dominated the market – presently the company lead both the smartphone system on chip and also the cellular baseband chips market, as per the reports of Strategy Analytics. The San Diego, California based corporation owns 64% of the cellular baseband chips market and 51% of the smartphone system on chips market, as of year 2014.

Unfortunately, the dominance of the semiconductor company in both these sectors has become the source of the problem since it managed to develop a number of patents over the years that it has been in the business. In a year’s time, the company has received negative investor sentiment because of these patents as regulators of these patents have tried their best for the semiconductor manufacturer to now gain leverage from these.

Recently, another chipmaker company by the name of MediaTek has openly declared war against the semiconductor company. MediaTek has decided to enter the smartphone chip market; the main reason for entering the market at this point was because it saw the declining share price, earnings and declining market share of the semiconductor company and thought it was the perfect time to swoop in and take over it.

Talking about the formation of the patents, they are mostly based on similar technology which the American corporation uses in its top of the line semiconductor processors.