Stock of San Diego's giant Qualcomm plummeted 10.28 percent today (January 29) on a day when the overall market was strong. The company said that its Snapdragon 810 processor will not be in the upcoming design cycle of a major customer. That customer is believed to be Samsung, which reportedly won't use Snapdragon 810 in the production of their Galaxy S6 smartphone. Qualcomm's stock lost $7.30 to close at $63.69.
Qualcomm lowered its 2015 earnings per share forecast to a range of $4.04 to $4.34, compared to the earlier peg of $4.33 to $4.63. Revenue is also expected to be softer. The company is concerned about growing competition in China.
Argus Research lowered its price target on Qualcomm to $80 from $89 but still ranks the stock a buy. The business lost from the Samsung move "is a blow," said Argus, noting that "turbulence is intensifying for every smartphone maker not named Apple." Qualcomm has products in "many phones that could benefit from Samsung's weakening position."