Against a backdrop of the year-long legal battle with Apple, Qualcomm has beat analystsâ? revenue plus earnings estimates in its fourth financial quarter.
Qualcomm booked $5. 96 billion in sales, or even 92 cents per share, compared to expectations of $5. 8 billion dollars and 81 cents per-share since the overall economics of the chip company continue to improve.
The figures were good enough to bump gives of the stock up 54 cents (or 1 percent) in after-hours investing, to $54. 00.
Qualcommâs ongoing legal battle with Apple had not been enough to completely overtake strength somewhere else in its business â? including along with Android handset makers like Samsung, Alphabet, LG and Xiaomi.
Indeed, as it looks out to the coming year, Qualcomm sees sales buoyed simply by increasing 3G and 4G transmission and growth in both the mobile phone and Internet of Things marketplaces, according to chief executive Steve Mollenkopf.
Chief among the reasons for Qualcommâs more powerful numbers is growth in the companyâs business in China with oem manufacturers there.
As brand new technologies roll out, including 5G online connectivity internationally, Qualcomm said it was properly positioned to capture a significant part of that market.
âWe are very excited about the increased momentum of 5G around the world,â Mollenkopf said.
Still, Appleâs lawsuit is waiting in the wings. Within January, Apple sued Qualcomm for almost $1 billion, for charging the hefty price for royalties upon technologies that Apple said the particular chipmaker should not be associated with. Apple furthermore alleged that the chipmaker had been withholding payments it was owed.
At issue is Qualcommâs charges of the percentage of the total price of apple iphones and other Apple products as the license fee for some Qualcomm patents.
The Apple suit followed within the heels of an antitrust lawsuit submitted by the U. S. Federal Business Commission for using its position since the leading supplier in the handset marketplace to charge fees on systems that amount to industry standards.
Qualcomm has counter-sued, claiming obvious infringement based on technologies Apple is definitely buying from the chipmakerâs largest competitor, Intel.
The company had been fined $774 million by the Taiwanese regulatory agency for antitrust infractions in a ruling that came lower in October. Qualcomm has said it could appeal the decision.
Regulators within Korea and China have also dinged Qualcomm for anticompetitive practices, along with Korea fining the company $854 mil and the Chinese government leveling the $975 million charge against Qualcomm in 2015.
The vomited between the two companies has evidently spilled into hardware design â? as the worldâs largest hardware producer reportedly begins designing products with no Qualcomm chips.
The multi-million dollar spat with Apple has also used its toll on Qualcommâs talk about price, which has declined precipitously in the last year.
Yet most is not lost for the chipmaker. The giant $47 billion bid intended for fellow semiconductor manufacturer NXP continues to be approved in the U. S. and it is moving through the approvals process within Europe and China.
Earlier this month, NXPâs management mentioned the $110 per-share price tag was obviously a good deal for its own shareholders and yes it seems like the deal will wrap up within the early part of 2018.
That acquisition would position Qualcomm properly against rival chipmakers Nvidia plus Intel in the growing market intended for automotive technologies and in the strong smart home and smart production categories.
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