\tQualcomm scored a small victory in the opening quarter of its fiscal 2019, striking a short-term licensing agreement with Huawei which at least temporarily settled one of two major disputes with its top customers.<\/p>\n
In an earnings call for the quarter (covering the three months to 30 December) CFO George Davis revealed Huawei agreed to pay quarterly installments of $150 million until end-June to cover a portion of royalties due. An initial payment was made during Qualcomm’s fiscal Q1, though negotiations for a long-term settlement continue.<\/p>\n
The agreement with Huawei marks Qualcomm\u2019s latest resolution of a customer dispute. In January 2018, it inked an amended patent deal with Samsung [1] which included the latter\u2019s withdrawal from a Korea Fair Trade Commission probe into the chip giant\u2019s licensing practices.<\/p>\n
Other battles
\nA series of high-profile rows with Apple remain ongoing, but Qualcomm CEO Steve Mollenkopf hinted an end may be in sight: “We continue to believe that over the course of 2019, we will reach a resolution on the key outstanding issues in our disputes with Apple through settlement or litigation, and we are prepared for both outcomes.\u201d<\/p>\n
Mollenkopf added the company remains engaged in settlement talks with the US Federal Trade Commission: this week both parties presented closing arguments in a court case [2] relating to Qualcomm’s business practices.<\/p>\n
While the company believes it made strong case at trial, the CEO said Qualcomm would be willing to accept a deal to \u201cremove this risk from the table\u201d.<\/p>\n
Financials
\nWeakness in the smartphone market was reflected in a 22 per cent year-on-year drop in chip shipments to 186 million units.<\/p>\n
Revenue fell 20 per cent to $4.8 billion. Net income of $1.1 billion compared with a loss of $6 billion in fiscal Q1 2018.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/qualcomm-samsung-strengthen-alliance\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/qualcomm-ftc-court-hearing-concludes\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Qualcomm scored a small victory in the opening quarter of its fiscal 2019, striking a …<\/p>\n
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