Tomahawk, WI 02/05/2014 (BasicsMedia) – The battle for market share in the smartphone segment is well underway. It appears to be between Apple Inc (NASDAQ:AAPL) and Samsung Electronics, but why is Qualcomm, Inc. (NASDAQ:QCOM) not very concerned?

The Smartphone Riddle:

Market share battles always favor one company or the other. Even smartphone segment is behaving that way. The main battle is between Samsung Electronics and Apple. Apple is at a slight disadvantage here as its iPhones are costly and market shares are about quantity not value. Samsung has several models across different price range. Customers in many emerging economics and many in even developed ones seem to be gravitating towards its products. But the real winner in this race appears to be suppliers like Qualcomm, Inc. (NASDAQ:QCOM). And considering that approximately 1 billion smartphones were shipped last year, we can say that safety lies in numbers. Currently smartphones account for a massive 55% of all mobile phone shipments and this number is expected to rise in the future.

The Common Supplier Wins:

Consider Qualcomm, Inc. (NASDAQ:QCOM)’s recent quarterly results. Revenues grew by 10% while its operating cash flows grew by a massive 41% to $2.78 billion. Shipments also grew by 17% y-on-y basis to 213 million units. Qualcomm supplies its chips to nearly all major smartphone manufacturers. And unless it loses out or falls out of favor with one major manufacturer, it is assured its place in the industry. In fact, the management is confident of giving double digit growths for the next five years. And the growth can be expected in the bottom line as well as the top line.

There are some insiders who seem to be monetizing their book profits. Qualcomm, Inc. (NASDAQ:QCOM)’s CEO, Paul Jacobs has sold 70,000 shares of the company at an average price of $73.80. The total transaction was valued at $5.17 million.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.