NEW YORK (TheStreet) -- Shares of Qualcomm Inc. (QCOM) are slightly lower in pre-market trade after it was reported that Samsung (SSNLF) released its first independently developed communication chip embedded in a smartphone, the South Korean Maeil Business Newspaper reports.
The company's system LSI division was confirmed to have started manufacturing the smartphone communication chip "Exynos Modem 303" from mid-August, said sources in the IT sector.
Communication chips are a key component of a smartphone that converts radio signals into voice or electronic information. But since Samsung Electronics had no communication chip of its own, it has thus far imported parts produced by Intel (INTC) or Qualcomm and used them to make the "Galaxy" series smartphones, according to Maeil.
Shares of Intel are down slightly lower in pre-market trade
TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."