QUALCOMM REPORTEDLY is preparing to buy high-speed internet chip designer Wilocity in a deal that could see the firm bring 7GBps speeds to its smartphone chipsets.
According to a report out of Israel, Qualcomm is set to pay $300m for Wilocity, which shipped its first commercially available chips at the end of 2012. However, the two companies have yet to agree all terms and conditions of the sale, the report said.
Israeli firm Wilocity announced its first smartphone chip at this year's Mobile World Congress (MWC), the Sparrow Wil6300 chipset, also known as WiGig, which uses 802.11ad network technology in the 60GHz radio frequency band that is able to transfer data at speeds up to 7Gbps. However, this superfast transfer rate comes at the cost of range, which is limited to mere metres and doesn't work through walls.
Nevertheless, Qualcomm's acquisition of the firm would be an obvious attempt by the firm to take this technology onboard, and perhaps develop it further to extend its operating range.
According to the source, if the deal is reached, Qualcomm will retain Wilocity's staff of approximately 60.
Last month, Qualcomm posted its smallest quarterly revenue increase since 2010, which saw its share price plummet five percent in afterhours trading.
Reporting its second fiscal quarter financial results for the three months to 30 March, Qualcomm said its revenues rose to $6.37bn during the period, up four percent from a year ago, with net profit up five percent to $1.97bn.
However, that was the smallest year over year percentage increase since the June quarter of 2010, when revenue declined by two percent, and was far lower than the quarterly growth rates of over 20 percent that Qualcomm investors have seen previously.
Following Qualcomm's earnings report, analysts said that the dip in revenue was attributable to a decline in sales in China as the country's biggest network, China Mobile, prepares to launch a faster network with 4G LTE technology, and customers are anticipating the launch before buying new smartphones. µ