Boston, MA 04/14/2014 (wallstreetpr) – QUALCOMM, Inc. (NASDAQ:QCOM) is a $132 billion organization that provides digital communications products. The company mainly serves the mobile chip market. Its peers and competitors include Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NYSE:AMD).
The company has currently succeeded in effectively locking Intel out of the mobile chip business. Its early entry into the market is the primary reason it commands strong and fast-growing market share in the smartphone chip market. In order to seal its position in the emerging market of smart devices, the company is investing in promising startups.
The company recently invested in wearable chip startup Ineda Systems. The startup designs, develops and manufactures ultra-low power chips targeting wearable gadgets such as smart watches.
QUALCOMM, Inc. (NASDAQ:QCOM) and Samsung Electronics are among the major semiconductor companies with an interest in Ineda.
Solving the problem
Ineda has offices in Santa Clara, California and Hyderabad, India. The company employs about 180 people and it develop low-power chips for use in the fast growing market of smart wearable. Since the launch of smart watches, for instance, the common complaint among users is the need to frequently charge the devices. On that note, Ineda works to develop breakthrough chips that can keep the devices powered for up to a month one a single charge.
Ineda is expected to start shipping its breakthrough products in high volume over the next several months, which is around the second half of 2014. The chips are targeted at a wide range of wearable markets such as smart watches and bracelets.
Expanding wearable ecosystem
In investing in Ineda, QUALCOMM, Inc. (NASDAQ:QCOM) seeks to expand its wearable ecosystem and tap greater value from the wearable market. Entering collaborative arrangements for wearable investment suggests the growing understanding within the company that value for shareholders can be improved by expanding the presence in wearable market that is expected to be the next big thing in the industry.