Qualcomm Grabs More Mobile Content With Wilocity

Find out why Qualcomm was so interested in Wilocity.

Ashraf Eassa
Ashraf Eassa and Nathan Hamilton
Jul 21, 2014 at 2:30PM
Technology and Telecom

It's no secret that Qualcomm (NASDAQ:QCOM) has been a very powerful force in the smartphone chip market. It has built up one of the world's best semiconductor teams and delivers highly integrated, best-in-class solutions across a number of vectors. Qualcomm sells what are arguably the best applications processors and modems for handsets, which has brought the company significant success.

However, as smartphone growth cools off – particularly at the high end – chipset providers like Qualcomm will need to bring on new platform features and grab incremental platform content. The idea here is that even if unit growth slows down, average selling price uplift can drive solid growth.

To this end, Qualcomm adds a company called Wilocity to its portfolio. The company develops 60 GHz multi-gigabit wireless chips for various computing markets, including mobile. 60 GHz technology doesn't yet have the range to displace Wi-Fi, but even in the near-term the technology can add meaningful functionality like wireless docking and high definition video streaming.

Motley Fool tech analyst Nathan Hamilton and Fool tech specialist Ashraf Eassa discuss this acquisition in the video below.