A disappointing 2015 revenue forecast has been released on Wednesday when the expectations for the quarterly earnings were missed, as the manufacturer of wireless chips continue to have struggles regarding royalty collection, as well as an investigation of antitrust in China.
The expanding network for high-speed 4G of China is stimulating smartphone demands with technology that is leading edge. On the other hand, the opportunities of Qualcomm have been blocked by an 11-month-old investigation of antitrust in the said area.
Worries strike Wall Street, since Qualcomm might face fines Worthing to over one billion dollars in China due to the investigation of the National Development and Reform Commission. Also, it might be obliged to concede, which is going to strike its business that is highly profitable, the one where it charges royalties on mobile phones which makes use of its patents.
According to Derek Aberle, the president of Qualcomm, they are continuing the cooperation they have with NDRC. He said, too, that they have continued meeting with the said group in a regular basis and that they exchanged certain ideas for possible ways to have the problem resolved. However, he also said that they do not have the ability to engage in updates when it comes to timing and expectations.
In July, Qualcomm said that it was having struggles on licensing revenue collection, too, from certain makers of devices in China. This includes an increasing population of local makers whom the manufacturer of the chips has had no or little business with during the past.
According to some investors, any royalty concessions which Qualcomm is obliged to create in China may spread to creators based in other nations.