We have, through many missives over the years, stated that there is a potential for QCOM to split. In our Monologue with Paul Jacobs, we said the business should split and that QCOM could sell its QCT division to Intel (or now even China Inc, given its global aspirations). The remaining QTL business could then acquire ARM and other intellectual property (IPR) and licence assets. This is a strategic direction the board and management could take. Yes, there are synergies between QCT R&D and IPR discovery, but these could potentially be overcome. Or it could beef up its chip business by diversifying beyond wireless. The issue is what to buy. Broadcom has gone. Marvel? Cavium? QCOM’s management team does not have much experience outside wireless, so would it even be able to diversify without a management shake-up? We are not too sure. That leaves expanding further into wireless: Qorvo and Skyworks Solutions, for example, are names that come to mind.
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QTL is useless without QCT. No engineers want to work for a company that just produces IP and doesn't actually build stuff.
1 Trillion?!?
Since 2007, the year that the iPhone was first introduced, the market capitalization of Intel has fallen from $155.7 billion to $114 billion, a decline of 27 percent. Over the same period, ARM's market value has grown from $1.7 billion to $18.5 billion. That's an increase of nearly 990 percent.