Broadcom to increase smartphone presence in 2012

Broadcom intends to increase its presence in the smartphone market significantly in 2012 as it seeks to build on the toe-hold it has grabbed in 2011, according to the company's CEO.

Broadcom CEO Scott McGregor


In an interview with Dow Jones Newswires, Broadcom CEO Scott McGregor said that although the company's smartphone applications processor is not that visible in the U.S. market, Broadcom is "dramatically upping" its roadmap. He said the company will score more design wins for smartphones running Google's (NASDAQ:GOOG) Android platform, including from Samsung and ZTE.

So far analysts say that Broadcom has found a niche in low-end smartphones. In the third quarter, Broadcom cracked the top 5 smartphone application processor rankings, according to research firm Strategy Analytics.

However, McGregor said Broadcom wants to supply chips for the full range of smartphones, and will work with handset OEMs to cut component costs by supplying integrated processors that combine applications processors and baseband processors, as its larger rival Qualcomm (NASDAQ:QCOM) does. McGregor said the bill of materials for smartphones using Broadcom chips will be under $100 next year. "$100 to $200 unsubsidized smartphones are very interesting to us," McGregor said.

For more:
- see this Dow Jones Newswires article (sub. req.)

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