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Qualcomm cautious

by on20 November 2014

qualcomm

Anti-trust in China

Qualcomm is more cautious on future revenue growth. The outfit has been doing well lately with the moves into 4G and mobile, but it is starting to get concerned about China.

The outfit faces an antitrust probe in China, which makes it difficult to collect royalty payments from the device manufacturers.

Qualcomm is expected to grow its revenue between eight and ten percent annual over the next five years and its earning per share by even more. CEO Steve Mollenkopf said at the company's annual investor day that Qualcomm's issues in China were creating problems with its royalty business, known as QTL, which provides most of Qualcomm's revenue.

Qualcomm's overall revenue grew 6.5 percent in fiscal 2014, which was far below the growth rates of approximately 30 percent in previous recent years.

Mollenkopf said that his company needed to resolve its China crisis we think we'll continue to grow in that area.” Qualcomm is developing low-power chips for data centres, which is currently a market dominated by Intel.

Qualcomm’s fifth-generation LTE modem chip, with improved upload and download speeds, was being trailed by customers to be commercially available next year.

 

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