Qualcomm’s quarterly report shows reducing revenue and hence shares tumble


Qualcomm had posted its quarterly results on Wednesday and it wasn’t something that the company would have been happy with. Qualcomm had posted its first drop in revenue since June 2010. The shift of the smartphone market from the developed countries to developing countries seems to be the main cause for this.

Qualcomm Snapdragon

The chip making company from San Diego had posted a revenue of $6.37 billion which is 4% more than the same period a year ago. The analyst predications were around $6.5 billion and revenue decrease of 2% would have been a tough pill for the investors who were used to 20% rise in revenue.

Qualcomm has cited the less than expected adoption of its chips by Chinese manufacturers and it hopes that, when China Mobile launches its new 4G LTE network later this year, this will be good again. Developing markets like China and India are places for Qualcomm to stamp its authority, but it would have to beat the local competition MediaTek.

Source


Author: Monish Kumar

Monish is passionate about smartphones who is also interested in User Experience and Design. He is currently using Samsung Galaxy S3. You can follow him on Twitter and Google+