Broadcom Is Said to Explore Deal to Acquire Qualcomm

The video discusses the potential strategic sense of a deal between Broadcom and Qualcomm, two major chip makers. It highlights the consolidation in the industry and the benefits of offering more technology to major customers like Apple and Samsung. Qualcomm is noted as the largest modem maker, while Broadcom leads in Wi-Fi chips. The video also explores the potential impact on Qualcomm shareholders, especially in light of ongoing legal disputes with Apple, and the challenges Qualcomm faces in maintaining its business model amidst aggressive bids.

What is one strategic reason for Broadcom and Qualcomm to consider a deal?

• To reduce production costs

• To enter the smartphone market

• To offer more technology to major clients

• To increase the number of customers

What type of chips is Qualcomm known for making?

• Graphics chips

• Modems

• Wi-Fi chips

• Memory chips

What is Broadcom's primary product in the chip-making industry?

• Modems

• Wi-Fi chips

• Processors

• Graphics cards

What is a potential risk for Qualcomm if they lose their dispute with Apple?

• Loss of market share

• Increased production costs

• Damage to their business model

• Reduction in product quality

What challenge does Qualcomm face in maintaining its business model?

• High employee turnover

• Lack of innovation

• Ongoing legal disputes

• Increasing competition from new entrants