This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Chromephone and Its Market Structure

Stocks in this article: GOOG NVDA BRCM INTC QCOM BBRY

NEW YORK ( TheStreet) -- My article from earlier this week caused a bit of controversy.

In short, the article suggested Google (GOOG) will be launching smartphones based on a future version of Chrome OS in about a year, and a Chrome OS tablet even before then. Well, clearly some people don't think this will happen -- whether within a year, or for that matter two.

In a year or two, we will find out who's right. Perhaps it will take a little longer. In any case, let's play with the thought that I'm right. If I am, what would a Chromephone ecosystem look like? Who would be involved? Winners and losers in the food chain?

The logic goes something like this: Android now has 70% to 75% of the world's unit shipments of smartphones, according to the latest surveys. This is an insanely high market share.

If you're in Google's shoes, would you put all of this 75% market share -- the Android operating system -- in one basket forever? What if something goes wrong with Android? For Google to diversify its tablet and smartphone exposure to its other operating system -- Chrome -- is only prudent risk management. This alone is reason enough to believe I will be right about the upcoming Chromephone and Chromepad, in addition to my previous arguments.

Anyway, the future Chromephone industry structure would look like this:

Let's start with the semiconductors. This involves primarily a CPU/GPU as well as the baseband and related radios. Who would get this business from Google and/or its hardware partners?

Let me contend that the leading contenders for this business, which could amount to hundreds of millions of semiconductors on annualized basis, within only a couple of short years, are these:

Qualcomm (QCOM), Nvidia (NVDA), Intel (INTC), Samsung and Broadcom (BRCM).

Qualcomm hasn't yet made a CPU for Chrome OS, but it's the leader in basebands. One would not want to bet against Qualcomm being involved in a future Chromephone or Chromepad.

Nvidia has made CPUs for Android, but its integrated baseband -- the Tegra 4i -- hasn't yet shipped. However, it may be ready in time for delivering product by the second quarter of 2014. Still, not as likely as Qualcomm or Intel.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs