Qualcomm has managed to exceed expectations in its final quarter of 2017 in spite of their ongoing litigation with Apple.
Estimates of revenue for Q4 projected $5.8 billion but as of the end of Q4, Qualcomm grossed over $5.9 billion as the semiconductor industry continued to advance.
The figures were good enough to boost Qualcomm shares 1% (or $0.54) to $54.00.
While Qualcomm’s ongoing litigation with Apple had some impact on the positive aspects of the business, it was not enough to totally negate them. There were still able to show growth working with Android manufacturers like Samsung, Alphabet, LG and Xiaomi.
Qualcomm’s growth in the Chinese equipment manufacturing industry played large part in Qualcomm’s stronger-than-expected.
Qualcomm is well positioned moving forward and poised to capitalize on the roll out of international 5G connectivity.
But that stands to be seen as the Apple litigation has yet to reach a resolution. With damages alleged in the $1 billion category, Apple is contesting that Qualcomm charged for royalties on technology that Apple contests Qualcomm is not associated with. Apple is also alleging that Qualcomm unjustifiably withheld payments owed.
Despite growth in Q4 2017, the Apple suit has done its fair share of harm to Qualcomm’s stock value, which has consistently weakened over the past 12 months.
Before the Apple suit was filed, the U.S. Federal Trade Commission filed an antitrust suit alleging that they used their position in the wireless sector to bill for fees on technology that can be considered industry standards.
Qualcomm is counter-suing, alleging Apple infringed on patents by buying from their largest competitor, Intel.
Still, there is a silver lining. Qualcomm’s $47 billion offer to acquire NXP (anothed semiconductor manufacturer) has been signed off in the U.S.
Acquiring NXP puts Qualcomm in a strong position to take on the competition (Nvidia and Intel) in the automotive technologies space, not to mention the rapidly-growing smart home and smart manufacturing spaces.
NXP’s former ownership says $110 per share was a more-than-fair deal for the shareholders and the deal should be finalized in early 2018.
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