Qualcomm profits dropped 90 percent but sales still beat analyst's expectations

William Gayde

TS Addict
Staff member

While some tech companies are reporting record profits for last quarter, Qualcomm's numbers are anything but good. The chipmaker today reported its fourth quarter earnings for 2017 and they are grim. While chip sales rose 13 percent, overall profits dropped 90 percent and revenue fell 4.5 percent. The company has put much of the blame for the poor results on the ongoing legal battle with Apple.

Analysts expected earnings of $0.81 per share and a total revenue of $5.8 billion. Qualcomm did beat those estimates with earnings of $0.92 per share and a revenue of $5.96 billion. Much of the success has come from demand for its Snapdragon mobile processors. CEO Steve Mollenkopf said that he continues to view this as a strong growth trend.

Net income dropped to just $168 million which is down from $1.60 billion last year. Qualcomm stated in its release that earnings were “negatively impacted as a result of actions taken by Apple and its contract manufactures.” Wall Street was more impressed with the strong earnings, though, so Qualcomm's stock held steady.

Qualcomm has seen its shares drop recently following reports that Apple may be building future iPhones and iPads with hardware from other vendors. The two companies have been going after each other in court all year. Apple filed a $1 billion lawsuit over unfair royalty practices and Qualcomm has been attempting to gain an import ban on iPhones in the US.

Permalink to story.

 

Kenrick

TS Evangelist
With intel entering the baseband modem market, qualcomm is becoming irrelevant as a supplier. I expect their shares to go down once Apple ditch them entirely. Even OEMs are tired and slowly going to intel. Those who play in the stock market should proceed with caution with qualcomm.
 

Theinsanegamer

TS Evangelist
Good job pissing off your biggest consumer there qualcomm. Sure it'll work out for you. Take your 2 years of diver support and shove it.

I greatly look forward to qualcomm being forced to compete, and hope we get some more competition in the SoC space.
 

Skidmarksdeluxe

TS Evangelist
With all the big manufacturers designing their own chipsets these days that are comfortably on the same level as Qualcomm in every way, and selling them to smaller manufacturers for less in licencing costs, I'm wondering for just how much longer they will remain relevant in the market.