QUALCOMM, Inc. (NASDAQ:QCOM) has signed deals with three major laptop manufacturers as part of its plan to push its processors into the PC market.
Qualcomm signed the deal with ASUS, Lenovo and HP Inc. (NYSE:HPQ) and the contract with the three firms will allow for the production of future laptops using Qualcomm chips. This is however not the first time that the chip maker has hinted the push towards the PC market. The firm announced in December 2016 that it had teamed up with Microsoft Corporation (NASDAQ:MSFT). The partnership would work towards developing a version of the Windows 10 operating system that would be compatible with the Snapdragon 835 chip.
What the move means for the tech industry
Qualcomm’s push into the PC market is certainly a huge step away from its core focus. The company has been making chips for mobile phones and its Snapdragon 835 chip is especially popular with high-end smartphones. Windows PCs are usually powered by chips made by Intel Corporation (NASDAQ:INTC). The decision also highlights the growing competition between the two chip manufacturers.
Intel recently started manufacturing chips that target the smartphone industry and has even signed up Apple Inc. (NASDAQ:AAPL) as a client. Some of Apple’s iPhone 7 models were fitted with modems manufactured by Intel. This was obviously a threat to Qualcomm and is perhaps of the reasons why it decided to also venture into Intel’s territory. The move also highlights the two chip makers’ search for more growth at a time when their core markets appear to have reached maturity.
Qualcomm has been experiencing slow growth in the mobile market and as such, it has been expanding into the Internet of Things, wireless modems, smart devices and cloud data centers. The company’s decision to start making chips for the PC market means more variety for the end users. It also highlights the growing competition in the market which should be characterized by better performance and quality in the future.