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As India prepares itself for the transition to 4G, Qualcomm has observed a 23% increase of revenue due to a demand surge for phones.
The American chipmaker powers more than half of all smartphones sold in India and posted sales of Rs 5,426 crore locking in a net profit of Rs 518 crore in FY18, financials sourced from research platform Tofler. The company’s growth slowed down from a year ago when it grew 39%, but has nearly doubled sales and profit over the past three years.
“There are two aspects that have stood out for India; one, this is a growing market for smartphones and two, the telecom carriers have also rapidly adopted 4G, which has transitioned this market totally from 3G to 4G and now is moving the 2G to 4G,” said Rajen Vagadia, country manager of Qualcomm India.
The telecom industry in the world’s second-most-populous nation is transiting rapidly to 4G data technology after the entry of RelianceNSE -0.39 % Jio. The Indian mobile network operator started services in September 2016, and helped spur data consumption in the country with its 4G-only network, meaning rivals Airtel and Vodafone were forced to slash its tariffs.
India mobile phone shipment crossed 300 million units for the first time ever with smartphones capturing almost 44% of the total volumes in CY 2017.
San Diego-based Qualcomm said it has evolved over the last few years supporting end-to-end product engineering, contributing to technology innovation in areas such as 4G, IoT and now 5G.
“This transition has been fuelled by solutions that Qualcomm provided, including the explosive growth of the Jio 4G feature phone at one end of the spectrum while our partners like Xiaomi have brought premium tier Snapdragon 845 at affordable prices,” Vagadia added.
Qualcomm’s Indian revenue doesn’t account sale of all its products in India however. A bulk of its transactions are with global suppliers in the US and China, which in turn market them in the country.
Shobhit Srivastava, research analyst, Mobile Devices and Ecosystems, Counterpoint Research says that most of the smartphones featuring Qualcomm’s Snapdragon chipset are in the mid and high tier segment, which explains the company’s billion dollar sales value in India.
”Qualcomm India can further grow its revenues given the OEMs (original equipment manufacturer) and ODMs in India start sourcing products directly with the advancing manufacturing and designing ecosystem in India,” he said in an interview to The Economic Times.
Qualcomm has helped bring features such as voice calls over a 4G LTE network and voice over Wi-Fi for consumers in India, by working closely with Indian cell carriers. The chipmaker said most companies were looking to launch major global technologies concurrently in India, making the country the first or second market for such rollouts.
According to The Wall Street Journal, Google is reportedly set to purchase significant amounts of real estate throughout New York City, which could provide an extra 12,000 tech workers to multiply its workforce.
Parent company, Alphabet Inc. is nearing a deal to buy or lease three new properties in the city, including a 1.3 million-square foot building in St. John’s Terminal.
Earlier this year, the tech giant spent $2.4 billion buying New York City’s historic Chelsea Market, with plans to add a community space, winter garden and a public water taxi landing. It closely resides to their 111 Eighth Avenue headquarters, which they purchased in 2010.
Over the last two years Google has spent a reported $2.8 billion on real estate, and earlier this month paid $1 billion for a property in Mountain View, California.
Amazon is also set for expansion in New York, with plans set to split its headquarters between Long Island City in Queens and Arlington County VA, providing a further 25,000 jobs for the company. HQ2 is set to be the largest economic development project in New York State history, bringing billion of dollars in tax revenue.
Samsung has announced that it will re-launch its much maligned Galaxy Note 7 after developing a refurbished version of the handset - and plan to introduce it into the South Korean market later this month. Samsung was forced to recall all of its Galaxy Note 7 devices last year, following widespread reports of handsets catching fire - and in some instances self-combusting, due to faulty batteries.
It was a huge blow for Samsung, and it’s been estimated that the faulty devices cost the South Korean conglomerate around $5 billion in operating profit – whilst it also dented its stock price and had an adverse effect on its relationship with stakeholders.
However, Samsung have now refurbished the Galaxy Note 7 by using new batteries and intend on releasing 400,000 phones to the market. The device has now been dubbed the ‘Galaxy Note 7 Fan Edition’ and is priced at around $611, which is about 30% cheaper than the price of the Note 7’s when initially launched last year. In addition to this, it has been revealed that the devices will be made from recalled, unsealed Note 7 handsets and unused Note 7 components.
Batteries in the newly refurbished Galaxy Note 7 have been subject to strict new testing, but have passed all the new safety measures which Samsung introduced following the recall last year. The batteries will have a lower capacity than those in the original Note 7.
Samsung had announced earlier this year that it planned to re-introduce the phones onto the market following the conclusion of an investigation by Samsung and other independent firm which established that the batteries were the sole responsibility for the fires in the faulty Note 7 devices. The world’s biggest smartphone maker by volume also announced its plan to launch an event for the Note 8 in the second-half of August. Samsung has thus far declined to comment on whether it plans on introducing the refurbished Note 7’s to other markets at a later date, although sources close to company claim they don’t plan on relaunching the refurbished Note 7 in the United States or India.