QCOM). Making matters worse, the company's margins have come under pressure as the average selling price (ASP) of high-end mobile devices have begun to come down due of fear of saturation. While Broadcom is not alone in these concerns, unlike its rivals Broadcom's stock has been unable to find a floor. After a horrid second quarter, which fanned the flames of worry, investors are beginning to wonder can this company ever recover. Even with the prolonged weakness in the sector, which produced uninspiring results from the likes of Intel ( INTC) and Advanced Micro Devices ( AMD), given Broadcom's "upper-tier level" position within the market, expectations for the company were still high. But with revenue growing just 6% year over year, which was below Street estimates, it was clear that management just couldn't live up to the growth demands. AAPL) strong iPhone shipments, I don't believe that Broadcom reaped an equal advantage. To that end, the idea that Broadcom is losing share to Qualcomm is no longer just a rumor.
For Broadcom, it wasn't all bad news, though. Despite the recent mobile chip struggles, one of the reasons that I've always liked this company is because its business is so well diversified. Investors take for granted that Broadcom also does well in the realm of networking, where one of its biggest customers includes Cisco ( CSCO). The company also generates revenue from not only satellite and voice-over-IP (VoIP) components, but also from the manufacturing of TV set-top boxes. With such a breadth of capabilities, I don't believe Broadcom will be down for very long. At some point these other markets, especially networking, should begin to rebound, helping Broadcom generate more revenue beyond what it generates as a mobile component supplier. In the meantime, these businesses are doing the majority of the pulling. Both broadband and networking segments grew 5% and 7% year over year, respectively, which were better-than-expected. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.