Denver, CO 05/22/2014 (Stocksntrade) – On account of Broadcom Corporation (NASDAQ:BRCM) showing better performance in recent quarters, the share price has moved up by almost 10% in the last few months.
The company has seen a steady decline in their mobile business in the previous year and has already paid a heavy price on this account. The revenues have been lower by almost 1% year on year.
Reasons for Optimism
The revenue and operating numbers presented by the company in the last quarter suggested that Broadcom Corporation (NASDAQ:BRCM) had adapted suitable measures that helped them sail over the difficult times they had faced previously.
The latest quarterly balance sheet reflected a sharp turnaround in the company’s performance that was far ahead of street expectations. Broadcom also performed much better than the guidance it had issued. The main segments for this improved growth were from the broadband and infrastructure sectors.
This growth has been made possible by the implementation of the latest technologies available. This can include up gradation to the benefits accrued from the VDSL platform that has the potential to provide faster connections for domestic users.
There is also the4 strong possibility that Broadcom’s set-top business was to gain substantially on account of the inclusion of the video coding (HEVC) service that will be provided. This has the potential to drive revenues mush higher on its own accord. Besides, the Ultra-HD Video side of their business would grow significantly on increased demand as a consequence.
Other Profitable Areas
Mobile banking services is another profitable sector where Broadcom Corporation (NASDAQ:BRCM) can offer its services and play a significant role here. The new mobile phones from the Samsung stable, such as the Galaxy Gear and the Galaxy Fit. These are compatible with the Broadcom chips that increase their versatility.
In addition, Broadcom has launched their LTE new technology products which are expected to be highly profitable for the future. Besides, some of these products are designed to cater to the huge Chinese market
Broadcom Corporation (NASDAQ:BRCM) also stands to gain substantially from the new launches from Apple, who are expected to come out with the iPhone 6 in August. Additionally, Apple has very aggressive plans of producing more than 80 million handsets in the coming year, which would be very beneficial to the future prospects of Broadcom.
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