Qualcomm Inc.’s fourth-quarter profit and revenue beat market expectations as strength in its smartphone chips business was complemented by demand for chips used in automobiles and for the Internet of Things (IoT), Reuters reports.
Qualcomm, which has been fighting a legal battle on many fronts with Apple Inc, said revenue from areas other than smartphones was more than US$3 billion in its latest fiscal year, up more than 25 percent from last year.
Revenue from Qualcomm’s chip unit, which supplies both Android smartphone makers and Apple, rose 13 percent in the latest quarter. Licensing revenue, which includes royalties mostly from Apple, sank 36 percent.
“We continue to see strong growth trends for global 3G/4G device shipments,” chief executive Steve Mollenkopf said.
Net income attributable to the company fell to US$168 million, or 11 cents per share, from US$1.60 billion, or US$1.07 per share, a year earlier.
Reuters reported earlier this week that Apple would drop Qualcomm’s chips altogether from its iPhones and iPads from next year, the latest salvo in a longstanding dispute between the two companies.
Apple sued Qualcomm in January, accusing it of overcharging for chips and of refusing to pay some US$1 billion in promised rebates. Qualcomm also sued some Apple contract manufacturers in April over royalty payments and is trying to ban the sale of iPhones in China.
Qualcomm continues to exclude from its forecast revenue related to the sale of Apple products by the iPhone maker’s contract manufacturers as well as the another licensee in dispute.
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