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Kick In The Pants For Qualcomm

Wolfgang Ziebart's parting gift to Infineon, as he prepares to depart as CEO at the end of the week, appears to be a notable coup in securing Infineon's position as a supplier to Samsung, the world's second largest supplier of mobile phones.

 

A Samsung handset using an Infineon chip-set is currently being sold in Europe.

 

Samsung had been very much a Qualcomm house for its wireless chips, but apparently it finds Infineon is 20 per cent better on pricing with quality equally as good.

 

Undoubtedly, the Infineon move will force Qualcomm to reduce its prices if it wants to keep Samsung's remaining business.

 

At the same time, Samsung's move will encourage other Asian handset makers to move away from Qualcomm.

 

Asia has been a big market for Qualcomm with many mobile phone manufacturers feeling obliged to buy Qualcomm chips, because they were concerned about the threat of litigation from Qualcomm for infringing Qualcomm patents if they didn't buy Qualcomm chips.

 

But now, other mobile phone manufacturers will see that, if Samsung can get away with not buying Qualcomm's chips, so can they.

 

And many buyers of Qualcomm chips complain they are priced too high.

 

Doubtless there will be itchy trigger-fingers in San Diego busting to issue writs against any recalcitrant Asian hand-set manufacturers.

 

But hopefully, that nice Dr Sanjay Jha, Qualcomm's COO, who was educated in the England and has some common-sense, will persuade the San Diego-ites that they can't control the wireless world.

 

 

 

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Comments (2)

David,

You should know better. Sanjay Jha may have had some education in England, but his Ph.D. is from Strathclyde in Scotland (where he is also an Adjunct Professor).

Will

david manners:

Excellent, Will, so as well as some English common sense he can bring some Scottish Presbyterian rectitude to the San Diego-ites.
All the best
David

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