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Chinese phone makers, licensing business drive Qualcomm beat
A Qualcomm sign is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai, China November 7, 2018. REUTERS/Aly Song
(Reuters) - Qualcomm Inc (QCOM.O) beat analysts’ expectations for fourth-quarter revenue and profit on Wednesday, helped by demand from Chinese smartphone makers targeting emerging markets and a newer licensing model for its wireless technology that has soothed relations with some big customers.
Shares of the company rose 1.5 percent in extended trading on Wednesday.
Qualcomm is the world’s biggest supplier of chips for smartphones but it has been battered by growth slowdown in the industry and a loss of major customer Apple Inc (AAPL.O).
And while Qualcomm has warned its investors that it expects no revenue from Apple’s newest iPhones, Qualcomm has struck deals with Chinese mobile phone makers including Xiaomi Corp (1810.HK), Oppo, Vivo and OnePlus, all of which offer lower-cost models in emerging markets like India.
The company has also eased its licensing requirements, which helped it retain large customers like Samsung Electronics Co Ltd (005930.KS) with new license deals.
Excluding items, Qualcomm earned 90 cents per share, beating analysts’ estimates of 83 cents, according to IBES data from Refinitiv.
Revenue fell to $5.80 billion, but was still above estimates of $5.52 billion.
Qualcomm's loss was $493 million, or 35 cents per share, in the quarter ended Sept. 30, compared with a profit of $168 million, or 11 cents per share, a year earlier. bit.ly/2Pf8YvL
Reporting by Sonam Rai in Bengaluru and Stephen Nellis in San Francisco; Editing by Anil D'Silva
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