Yes, this is the sad news for the week. However, nothing is ever done in business without a purpose. Sometimes we have to end something to start a new venture or to focus on other things that we already have we know we can do better with, which is the case for Broadcom.

Let us take a retrospect first of its contribution to the mobile market. Broadcom rolled out the first Android-enabled mobile phone platform which supports high definition camcorder, video player and 12mp-capable digital camera applications. Back in 2006, they set up 3G mobile phones for the price of 2G phones made possible by the then new CellAirity.

But through the years, Broadcom has been losing pace in the competition. And now it is really hard for them to catch up with their rival Qualcomm. They can still retail baseband units; however, there is no guarantee to the sale success. So, they had to come up to this unfortunate decision, which according to CEO Scott McGregor would help the company reduce its losses and instead focus their resources on its core strengths, which are evidently set-top boxes and cable TV-related hardware, Internet connectivity and infrastructure tech. McGregor also spilled the beans about transitioning to Ultra HD and H.265 as potential plans of the company. With regard to this, Broadcom is anticipated to scale down up to 20% of its workforce which is about 2,500 employees.

Do you think Broadcom made the right decision? Feel free to comment!

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