Denver, CO, 06/03/2014 (Stocksntrade) – Broadcom Corporation (NASDAQ:BRCM) is by far one of the few component suppliers of handsets which has been able to hold its own, where the dominant players with deep pockets have been able to ensure maximum stretch. The key with BRCM has been the volley of high-end component supply line-up it holds for some of the top-line phone makers.
Holds sway as High-end supplier
Broadcom Corporation (NASDAQ:BRCM) has in the recent times been successful in bagging supply-orders from the likes of Samsung Galaxy S5, iPhone 5S, HTC One as well as LG G3 model. These phones will carry the connectivity solutions from Broadcom, especially the combo chips.
Broadcom is winning out on more contracts based on two key features, which the likes of competitor companies such as QUALCOMM Inc (NASDAQ:QCOM) fail to do. The drivers in the competitive chips for handsets – as power consumption as well as performance – are what Broadcom has always focused on and now continues to deliver to end-consumers.
But the main risk factor for Broadcom has been a rather dramatic move to offer processors for modems and apps. Currently in the transition stage, it has yet to come out of its traditional revenue earning avenues – wireless as well as mobile connectivity components.
Broadcom Corporation (NASDAQ:BRCM) is able to sustain its high-end phone supplies but for higher profitability will have to chase after the low-end phone components, for which the major component is – modem and apps processors.
In the previous few weeks the company has been doing remarkably well on the stock market. The key features of this is the dividend yield of 1.15% along with a PE ratio of 46.2. Besides, this is one component supplier for the handset sector which has over 32analysts covering it. Currently, 12 of them rate it as hold. With one as sell while majority 19 analysts rate it a Buy!
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