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Source: GoPro May Add Qualcomm As Supplier, Lowering Dependence On Ambarella

Source: GoPro May Add Qualcomm As Supplier, Lowering Dependence On Ambarella
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A major supplier for GoPro Inc (NASDAQ: GPRO) might take a big hit soon.

A source familiar with the matter told Benzinga that GoPro is considering adding Qualcomm, Inc. (NASDAQ: QCOM) as a component supplier, which would lessen a present dependence on Ambarella Inc (NASDAQ: AMBA) and potentially cut the latter’s contract sales.

Ambarella shares are volatile Tuesday, hitting a low of $53.12 and a high of $54.35.

These reports follow a positive run for Ambarella, whose shares have risen since 2015 after Wall Street realized its critical role in supplying imaging sensor parts for GoPro devices. Still, some have long anticipated a Qualcomm intervention.

In June, some specialists called for GoPro to embrace a Qualcomm partnership for its upcoming Hero5 cameras.

Even Ambarella may have hinted to the possibility during a December conference call, when CEO George Laplante said demand for "primary consumer product customers indicates there is a potential for a negative impact to revenue in the early part" of 2017.

Representatives from Ambarella, Qualcomm and GoPro were not available for comment.

Posted-In: GoPro HERO5 HERO5News Rumors Contracts Exclusives Tech Best of Benzinga


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