Feeds

Booming 3G demand lifts Qualcomm

R&D tops a billion

The Power of One Infographic

3G networks might not be the money-spinner the carriers once hoped, but they're bringing increasing cheer to Qualcomm investors with each quarter. Qualcomm provides chipsets for its own flavor of 3G and receives a royalty on each W-CDMA phone sold, whether or not they include Qualcomm silicon. W-CDMA is the flavor of 3G favored by GSM carriers in Europe and Asia.

Yesterday the San Diego company reported a Q4 profit of $538m, up 40 per cent year-on-year.

Average selling prices have declined slightly from $212 to $206, but tis is offset by a growth in shipments of 3G phones: Qualcomm reckons it will sell 51 to 53 million in the current quarter, up from 40 million a year ago.

(That's more than twice as many iPods have been sold in the music player's entire history.)

Qualcomm sees 262 million CDMA units being shipped in calendar year 2006, with 86 million of those being W-CDMA

For the full year, Qualcomm recorded a profit of $2.14bn on sales of $5.67bn, up 25 per cent and 16 per cent respectively. Qualcomm spent $1bn on R&D in the full year, up 40 per cent.

Executives said the company is looking at revenue of $6.7bn to $7.1bn for FY 2006.

Six rivals and partners last week filed a complaint with the EU about Qualcomm's W-CDMA royalty rates depressing the share price to $40. Panasonic and NEC are joining Qualcomm's historical adversaries - Nokia, Texas Instruments, Broadcom and Ericsson - in the action.

As we reported on Monday, Qualcomm may be quietly watching the WiMAX bandwagon from the sidelines, but it's also a kingmaker for 4G. ®

The Power of One Infographic

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.