Hot chips and China crisis a thing of the past
Qualcomm forecast current-quarter profit largely above market estimates as it sees strong demand for its mobile chips in China and expects to sign more licensing deals.
Shares of the company, which posted a better-than-expected third-quarter profit as the company put its days of overheating chips, Chinese fines and non-paying customers behind it.
Chief Executive Steve Mollenkopf said that there was an incremental demand for our lower-tier chip sets in China versus the company's prior expectations
Qualcomm expects to launch Snapdragon 821, an advanced and a faster version of Snapdragon 820, which powers Samsung Galaxy S7 and S7 edge smartphones.
It has Samsung is back as its customer, more people in China are ready to pay to license their technology and analysts think it is well positioned for the coming quarters.
The company said it expects fiscal year revenue in its high-margin licensing business to be between $7.4 billion and $7.8 billion.
The chipmaker's next big bet is the fast next-generation 5G technology, a wireless service that is expected to be 100 times faster than the current 4G networks.
The company said it now expects to gain traction in the 5G technology by 2018-2019.
US regulators last week paved way to open spectrum for the 5G wireless service which is good news for Qualcomm's bottom line.
Qualcomm expected to ea revenue between $5.4 billion and $6.2 billion. Analysts were expecting about $5.73 billion. Revenue rose to $6.04 billion quarter ended June 26 from $5.83 billion a year earlier. Net Income attributable to Qualcomm rose to $1.44 billion, from $1.18 billion.
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