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(LEAD) Qualcomm says 'no problem' for its application processor

All Headlines 16:54 January 29, 2015

(ATTN: ADDS more info in last two paras)

SEOUL, Jan. 29 (Yonhap) -- U.S. chip giant Qualcomm Inc. said Thursday its latest application processor, the Snapdragon 810, holds no quality problems, in an apparent attempt to curb rising rumors among consumers here that the chip overheats.

The company's local unit in South Korea said the Snapdragon 810 has been used in more than 60 smart devices, and the product is already being mass produced and boasts excellent performance, quoting Alex Katouzian, the senior vice president of Qualcomm.

It added that the chip has also been fitted to the G Flex 2 smartphone launched by South Korean smartphone maker LG Electronics Inc. LG has said it is "satisfied" with the performance of the Snapdragon 810.

Qualcomm, however, did not touch directly on the overheating issue, only saying there are no problems regarding its performance.

Industry watchers earlier said that Samsung Electronics Co. has decided not to use the Snapdragon 810 in its next Galaxy smartphone model, presumably the Galaxy S6, using instead its in-house chips due to the alleged problem.

The next Samsung smartphone flagship is highly likely to be showcased in March.

Both Qualcomm and Samsung have claimed that nothing has been decided on the issue.

But Qualcomm said in its latest earnings report that it has downgraded the company's performance forecast to reflect that a flagship smartphone by one of its major clients will not adopt the Snapdragon 810.

Samsung, which has been one of the major buyers of Qualcomm chips, is estimated to be contributing to more than 10 percent of the U.S. firm's annual revenue.


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