Thread regarding Qualcomm Inc. layoffs

Qualcomm: Once a predator, now prey

PJ & SM saw the licensing model begin to crumble a long time ago. They knew SoC & modem margins would progressively shrink in the face of Chinese competition, vertical integration at OEMs, and commoditization. And despite PJ's misguided and poorly executed attempts to enter new markets (MediaFLO, Mirasol, Vuforia, QuIC, Qualcomm Health and many more), they failed to diversify revenue.

Clinging to an antiquated, globally-reviled licensing model and dying chip business, PJ's and SM's "Hail Mary" to acquire NXP and increase Qualcomm's revenue base is now tumbling toward failure.

The wolves have seen this limping company hobbling along. They know prey when they see it. And now, Qualcomm must either fight for its existence or be devoured. We can expect lots of public statements proclaiming Qualcomm's many, MANY new revenue opportunities ahead and how things are going AWESOME with 5G. But the wolves know: Qualcomm is sick and slow, and they are poised to take it down.

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Post ID: @OP+Q77LvHV

11 replies (most recent on top)

Best Deal Ever. QCOM should grab the offer. Never before opportunity for all employees to be part of Mega Corporation and reap rich dividends !!

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Post ID: @1wgk+Q77LvHV

I still remember a few years ago in the all hands meeting, PJ was talking about the awesome quarter -- "Our (revenue) growth this quarter is more than entire Broadcom's revenue ..." -- with so much confidence, like he owns entire semi-conductor industry.

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Post ID: @1ydh+Q77LvHV

The lone wolf dies, but the paQ survives

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Post ID: @1yqu+Q77LvHV

Qcom is such in a pathetic condition that it takes the offer of broadcom to reach this price..

Qcom would never go to $70 on its own keeping in mind the state of the company, business and morale of the people.

Qcom should take the $70 offer

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Post ID: @1xgl+Q77LvHV

Well said!

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Post ID: @1qza+Q77LvHV

I'll take $70 no risk. For QCOM to get there on their own, they need 1) no royalty changes from Taiwan and South Korea, 2) to close NXP deal and generate cost synergies, 3) win U.S. FTC suit, 4) favorably settle with Apple, 5) hope Samsung, Huawei, Xioami, and Apple do not use their own modem or applications processor and abandon the Qualcomm integrated solution. Highly unlikely QCOM "runs the table" on all the above risks.

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Post ID: @1mkz+Q77LvHV

So true. Well said. Qualcomm is still awesome!

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Post ID: @1isw+Q77LvHV

So true! look at this from our press release on Broadcom's offer...

"Qualcomm's Board and management have continued to execute on its strategy to position the company for the next phase of profitable growth by making focused investments to extend its leadership in mobile into new opportunities, while maintaining financial discipline and a robust capital return program. Qualcomm has significant opportunities to drive substantial additional value for its shareholders as its technology and product roadmap move into new industries."

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Post ID: @1itm+Q77LvHV

It is well known that the most frightening fear for humans is the image of being devoured. We should expect massive resignations as a result.

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Post ID: @1koe+Q77LvHV

Outstanding synopsis from a long time, perhaps retired employee, bravo!

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Post ID: @1kuq+Q77LvHV

@OP: your comment is pure poetry in face of our fateful reality. Thanks for putting this together in plain English.

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Post ID: @urt+Q77LvHV

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