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Internet of Things Can Provide Growth to Broadcom

August 31, 2014 | About:



The new buzz of the market is Internet of Everything(IoE) and the associated gadgets as Internet of Things(IoT). Total number of devices that are inter-connected over internet surpasses the global population of the planet. In the very near future, pretty much everything you can imagine will wake up. We are leading the next step in the evolution of the Internet and helping change the way we work, live, play and learn. 25 billion devices will be connected by next year, and that number will grow to 50 billion by 2020. The greater part of this new information that the IoE produces will change the occupation scene for eternity.

The Internet of Things keeps on adding new things every day to a developing rundown of effectively joined things; and these "things" have the chance to totally change our reality. It is assessed that the Internet of Things would turn into a $19 trillion business throughout the following a few years. The quantity of versatile associated gadgets will surpass the world's populace before this current year's over and by 2018, 96% of portable information movement will begin from these keen gadgets.

The IoT, will certainly creates new openings for various equipment manufacturers and many companies are joining this IoT bandwagon to leverage growth in future. Broadcom (BRCM), is a global innovation leader in semiconductor solutions for wired and wireless communications.

Quarter Results

The company recently released second quarter results for fiscal 2014. It recorded revenue of $2.04 billion, sequential gain of 2.9% that recorded 1.98 billion in the first quarter, and witness a decline by 2.9% year over year. It recorded GAAP net loss of $1 million as against net loss of $251 in same quarter prior year. Net loss for the second quarter of 2014 included charges for the impairment of long-lived assets, restructuring costs and an inventory write-down related to our decision to exit the cellular baseband business totaling $187 million.

Non-GAAP net income for the second quarter of 2014 was $406 million, compared with non-GAAP net income of $318 million, for the first quarter of 2014 and non-GAAP net income of $436 million, for the second quarter of 2013.

Growth prospect from “Internet Of Things” market

The company is focusing the IoT market and this is exemplified by its launch of Wireless Internet Connectivity for Embedded Devices (WICED™) family to empower engineers to quickly model plans and ideas for IoT gadgets and applications. The Broadcom® WICED Sense development kit is a bundled pack of IoT. The main ingredients to this development kit is Broadcom’s latest Bluetooth smart chip, five miro electro-mechanical systems (MEMS) with Bluetooth 4.1 enabled software. Broadcom's WICED Sense kit provides innovators of all sizes a cost-effective platform that minimizes set-up time and enables rapid demos of IoT concepts for hardware and software developers. This kit supports both iOS and Android OS developers.

Future homes are homes with Smart Living concept which provides connectivity of various home appliances. Haier is one of the leading manufacturers of home appliances and white goods. Haier is now shifting from traditional products to internet connected appliances which relies on IoT platform. Emphasized at the 2014 Consumer Electronics Show, Haier's most recent "Smart Living" appliance offer basic and flawless connectivity with a wide selection of cell phones, permitting purchasers to manage and control home machines from geographical locations. Broadcom's Wireless WICED will power the latest smart appliances.

Few Haier's smart appliances are based on Broadcom's WICED™ platform. The WICED platform provides original equipment manufacturers (OEMs) with a basic implementation of wireless connectivity, including WiFi and Bluetooth, enabling an array of consumer devices for the rapidly expanding Internet of Things (IoT) market.


Considering the mammoth market size of IoT and Broadcom’s focus on this,the future for Broadcom looks much better. I would suggest a buy for Broadcom if you looking for long term growth prospects.

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