Who Loses as Samsung's Galaxy S4 Stalls?

By Evan Niu, CFA – Jun 27, 2013 at 7:00PM

NASDAQ: QCOM

Qualcomm

Market Cap

$182B

Today's Change

(1.46%) $2.39

Current Price

$165.69

Price as of April 26, 2024, 2:48 p.m. ET

Samsung's new Galaxy S4 has been having trouble hitting the big numbers that investors were hoping for. Two component vendors inside may have some limited upside as a result.

Samsung has been under pressure recently, as Galaxy S4 unit sales haven't been meeting lofty expectations. The South Korean company has said that it shipped 10 million units in the first month, which, while impressive, was still short of its internal forecasts. Competition on the high end is intensifying, while carriers have also been tightening upgrade policies.

Broadcom (NASDAQ: BRCM) and Qualcomm (QCOM 1.46%) are two companies who were hoping to cash in on the Galaxy S4. Broadcom provides the Wi-Fi, NFC, and GPS chips. Qualcomm sources the baseband modem, power management, and processor in many variants.

In the video below, Fool contributor Evan Niu, CFA, discusses why these two companies may have limited upside from the Galaxy S4.

Fool contributor Evan Niu, CFA, owns shares of Qualcomm. The Motley Fool owns shares of Qualcomm. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.