Last year, Samsung (NASDAQOTH:SSNLF) deviated from its usual plan when it switched from using Qualcomm's (NASDAQ:QCOM) Snapdragon mobile processors to to using its own Exynos for the Galaxy S6 phone. The change came because the Snapdragon 810 processor ran too hot in preliminary testing, and since then Qualcomm has hoped it would earn a spot back in Samsung's flagship devices the next time around.
But recently Samsung unveiled its new Exynos 8, with a built-in LTE modem and custom-built CPU. The announcement means Samsung is less likely to use Qualcomm's new Snapdragon 820 processor for its upcoming Galaxy S7. Some rumors speculate that Samsung might still use Qualcomm's processor in the U.S. and Chinese versions of the S7, but that has yet to be unconfirmed.
If Samsung doesn't let Qualcomm back into its devices, that's obviously bad news for Qualcomm, but it does't mean the Snapdragon 820 won't make it into other high-end smartphones and devices. In fact, Qualcomm's already said it has agreements to put the chip in more than 60 different devices. So let's take a quick look at the technology that Samsung may have passed up, and how other smart devices could benefit from it.
Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Qualcomm. Try any of our Foolish newsletter services free for 30 days. 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.
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