By Dhirendra Tripathi
Investing.com – Qualcomm (NASDAQ:QCOM) stock dipped 0.5% Monday as Google (NASDAQ:GOOGL) said it would drop the chipmaker and instead build its own chips to power its Pixel 6 and Pixel 6 Pro phones this fall.
Repeated attempts by Google over the years to grab market share with its Pixel phones haven’t yielded results. But the announcement by the search giant takes a key client away from the maker of Snapdragon chips that power most of Android phones.
Named after the Tensor processing unit Google uses in its data centers, Tensor SoC won’t be a single processor but a system on a chip (SoC).
Google’s decision to take control of manufacturing of the most critical element of a phone shows the search giant’s desire to control costs and the supply chain. According to reports, the new phones will have premium pricing, showing the company’s intent to take on Apple (NASDAQ:AAPL).