Qualcomm's China Compromise Pays Off

by Susan Rambo - EETimes

SAN FRANCISCO, Jul. 22, 2016 – 

Phone chip supplier and intellectual property licensor Qualcomm Inc. (San Diego, Calif.) reported revenues of $6 billion in its third quarter earnings call yesterday (Wednesday July 20), up 3% year over year, up 9% over last quarter.

$3.85 billion of the $6 billion revenue came from Qualcomm's QCT (Qualcomm CDMA Technologies) segment: its 3G/4G CDMA-based multimode modems and chips. $2.04 billion came from its licensing business (QTL, or Qualcomm Technology Licensing).

Despite the cut in its royalty fees as part of the agreement with China's National Development and Reform Commission (NDRC), Qualcomm says its licensing business in China ia making money, including catch-up payments from Chinese companies that previously refused to pay royalties.

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