Today, Qualcomm released its most recent financial report. The company’s revenues in the fourth quarter of last year fell 20% year-on-year (YoY), but the company is not very worried, because the upcoming 5G will be a hit for Qualcomm. After the earnings report was announced, Qualcomm executives also accepted questions from analysts. Qualcomm said that Huawei has just signed a short-term licensing agreement with them and this agreement will be valid until the Qualcomm’s third fiscal quarter.
Qualcomm CFO George Davis said in a conference call that Huawei will pay Qualcomm $150 million each quarter. Huawei and Apple are the only two large companies that are still fighting against Qualcomm terms. An agreement with Huawei can only alleviate the market’s concerns about whether Qualcomm can charge license fees in the future. Qualcomm CEO Steve Mollenkopf said on Wednesday that he is confident in the lawsuit against the company’s licensing efforts.
Because Qualcomm has patents related to 3G, 4G, and 5G network technologies and other software features, all handset manufacturers that want to connect devices to cellular networks must pay royalties to them, even if they don’t use Qualcomm’s chips.