Qualcomm reported a strong growth in profit as its Chinese operations picked up pace, with the company also noting growing IoT momentum.
China has proved something of a sticky wicket for Qualcomm, following a dispute with the country’s NDRC concerning its charges. In the build-up and wake of this, the company had said that vendors had been reluctant to do deals.
Qualcomm chief Steve Mollenkopf said that it now has more than 110 deals signed that are consistent with the terms of its resolutions, although some companies – notably Meizu – are not playing ball.
Away from smartphones, the vendor said that in automotive it is seeing “a strong alignment between the industry needs and Qualcomm’s technology”, and new products have also been introduced targeting wearables and drones.
For the quarter to 26 June 2016, Qualcomm reported a 22 per cent increase in profit to $1.4 billion, on a 4 per cent increase in revenue to $6 billion.
The company’s top-line was boosted by the recognition of $235 million in revenue related to a deal with LG Electronics, and $200 million in catch-up revenue from Chinese vendors which had been delayed by earlier negotiations.
Qualcomm also said that a previously-revealed “strategic realignment plan” is on track, with the company set to see $700 million in savings in the current financial year – an increase of $100 million from its earlier investment.
It is also focusing its efforts on “core smartphone technologies, adjacent opportunities and new businesses,” while exiting or reducing its commitment in non-core areas.
And Qualcomm said that “contrary to the recent press reports”, the Korean Fair Trade Commission has not reached a decision following an investigation into its practices.