During the recent CES, Broadcom CEO Scott McGregor detailed how his company decided to drop its smartphone modem business, which presently is dominated by Qualcomm. However, according to him, that market now being targeted by a number of "must-win-at-all-cost" chip companies in Asia.

Noting that his company was losing about $2 million a day in the modem business, McGregor, who looked almost relieved, proudly pointed to the Broadcom booth and bragged, "We have no cell phones." The company's focus is now on the broadband and connectivity businesses. "Our broadband is an extremely strong and valuable business. Our connectivity business is also very strong, and is focused more on the Internet of Things now," he said. "Frankly, these are better businesses to be in and invest in."

The company is broadening its technology and businesses. These include connected homes, and more recently, automotive. McGregor called the automotive segment "a great business we are sort of tiptoeing into" and finding it "very interesting."

By: DocMemory
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