Qualcomm Forecasts Show Struggle for License Deals in China
- Chipmaker experiencing delays in royalty signups, CEO Says
- Chipset demand came in stronger than company had predicted
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Qualcomm Inc.’s forecast for quarterly sales and profit fell short of some analysts’ estimates, underscoring the chipmaker’s struggle to collect technology-licensing fees for smartphones sold in China.
The company said it’s facing tough negotiating tactics at phone makers in the world’s most populous nation, as some companies there withhold payments and stop reporting shipments in an attempt to secure better terms. That led to the weaker outlook for the company’s licensing business, its most profitable, sending shares down as much as 6.7 percent in extended trading.