Qualcomm (NASDAQ: QCOM) is the leading vendor of smartphone applications processors and cellular modems, which are usually combined into a single chip. The company’s dominant position in the smartphone chip market has afforded it substantial revenue growth and a solid amount of profit growth over the past several years.
As industrywide smartphone growth decelerates from the rapid pace seen in prior years, Qualcomm has been looking to expand its revenue sources to offset the declining growth rates in its core mobile processor business.