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Broadcom Decision Could Be Boon for Qualcomm

Qualcomm Inc. competitor Broadcom Corp. said that it will stop offering baseband chips, or cellular radio chips, for mobile devices. The move presumably opens market share for its rivals.

Irvine-based Broadcom (Nasdaq: BRCM) said early June 2 it plans to sell or wind down its baseband business. The corporation said that it was spending $600 million annually in the baseband space, for research and development, as well as selling, general and administrative expenses.

The market rewarded Broadcom for its decision, sending shares to close at more than 9 percent higher on the day of the announcement. On June 3, a generally down day for the markets, Broadcom shares advanced an additional 3 percent, to $35.88.

Qualcomm (Nasdaq: QCOM) shares advanced 3 cents to $80.48 on June 2, then lost 8 cents on June 3, closing at $80.40.

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