DALLAS-Adding to recent optimism surrounding the uptake of CDMA technology-based products, Texas Instruments and STMicroelectronics announced they have created an open solution that supports the CDMA2000 1X standard for wireless communications. The companies aim to grab market share from Qualcomm Inc., which has enjoyed rising CDMA chip sales this year.
The TI and STMicroelectronics joint solution, which is currently available in sample quantities, provides a hardware and software platform to simplify design and speed time to market, while reducing power consumption, component count, board space and bill of materials costs for handset manufacturers.
“The new CDMA2000 1X solution provides an open and flexible platform that will encourage growth in the CDMA chipset market,” explained Rick Kornfeld, vice president and general manager of TI’s wireless chipset business. “With this solution’s modular architecture and the breadth of wireless products offered by both companies, CDMA terminal manufacturers now have an unprecedented alternative for designing innovative, competitive wireless products.”
The news follows Qualcomm’s release of improved financial guidance, which was brought on by estimates that CDMA sales will be greater than previously expected. Following Qualcomm’s renewed guidance, RBC Capital Markets upgraded Qualcomm’s rating to outperform, “based on stronger-than-expected CDMA trends,” and raised the company’s 12-month price target to $60 from $48.
At press time Friday, Qualcomm was trading the highest it has in a year at $49.87 per share; Texas Instruments was at $28.92 per share; and STMicroelectronics was at $27.87 per share.
