Qualcomm Unshaken After Loss Of $2 Billion To NXP


Qualcomm released its Q3 earnings recently and it showed that the company racked up a revenue of $5.6 billion which represent a 4% increase year-on-year, with a net profit of $1.2 billion (up 41% year-on-year). Qualcomm abandoned the acquisition of NXP after the final deadline on Wednesday and the company had to pay $2 billion in liquidated damages. However, Qualcomm is not without gains this quarter. They have received a patent fee of $500 million from a smartphone company which is suspected to be Huawei.

Due to the failure to obtain approval from the Chinese regulatory authorities at 11:59 on the 26th of this month, Qualcomm abandoned the acquisition of NXP and the company’s $2 billion liquidation damages fee is very costly. Although faced with a major defeat, Qualcomm’s share price did not fall sharply because the market was psychologically prepared for Qualcomm’s failure in acquiring NXP  and also, Qualcomm has decided to buy back $20 to $30 billion dollars of stock in order to boost market confidence, thus there was no fiasco after the deal fell apart.

Previous Xiaomi Is the 10th Largest Internet Company In China
Next Budget 6.1-inch iPhone Will Use A "Full Active LCD" Display