Qualcomm unveiled the first details about its upcoming smartphone chip Wednesday. Analysts say the company's focus on improving graphics could win back lost customers.
The San Diego-based company says the new entry in its line of Snapdragon chips, the Snapdragon 820, will sharpen displays while conserving power. Qualcomm is promising 40 percent better graphics with 40 percent reduced battery consumption compared to its current system on a chip.
Loyd Case, an analyst with the Linley Group, likes to see Qualcomm focused on improving mobile gaming, video streaming and photography.
"Smartphones are getting bigger," Case said. "Everybody wants 4.7 or 5.5 or 6-inch screen now. Driving all those pixels takes a lot of graphics horsepower."
Much is riding on Qualcomm's new chip. The company recently announced thousands of layoffs after a rough financial year. Qualcomm hopes to attract lost customers like Samsung, which used its own in-house chip in recent Galaxy smartphones.
Semiconductor industry analyst Patrick Moorhead says companies could flock back to Qualcomm if the company builds strong processing power into its new chip, and delivers it to phone makers quickly.
"I do think that the new graphics that are in the Snapdragon 820 could help lure back a company like Samsung," Moorhead said.
Devices featuring the Snapdragon 820 are expected to roll out in early 2016.
Moorhead says one market force that could stymie a strong rebound for Qualcomm is the rise of the iPhone. Apple builds its own system on a chip for the iPhone.
"There are some things that Qualcomm just can't control," Moorhead said.
