Tuesday, January 25, 2011

Google's (NASDAQ:GOOG) Android Driving Qualcomm (NASDAQ:QCOM)

Qualcomm (NASDAQ:QCOM) continues to grab market share on the strength of Google's (NASDAQ:GOOG) Android.

Goldman Sachs says, "Android adoption continues to surprise to the upside, as supported by our recent upward revision to our industry smartphone unit model, where we increased Android units considerably, based on our bottoms-up vendor forecast of the Android market. We estimate that every 1% of market share shift from feature phones, where Qualcomm has around 30% share, to Android based smartphones, where we estimate it has about 80% share, translates to $0.06 upside to EPS."

Earnings expectations for the first quarter are for $0.72 a share on revenue of $3.2 billion.

Qualcomm (QCOM), which was trading at $50.75, down $0.74, or 1.44 percent, as of 2:21 PM EST, remains on Goldman Sachs' "Conviction Buy List."

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