Qualcomm Profits Fall 40% in Q3: $866M Net Income

[FrgMstr]

On the heels of all the legal wrangling going on between Apple and Qualcomm, we get to see Qualcomm profits fall 40% in Q3.


San Diego-based Qualcomm Wednesday reported $866 million in net income, or 58 cents per diluted share, in the third quarter of its fiscal year, compared to $1.4 billion, or 97 cents per diluted share, in the same period last year.

The results for the quarter ended June 25 represented a 40 percent drop. However, the performance was an improvement over the second quarter, in which net income was roughly $700 million, or 50 cents per diluted share.

 

[grtitan]

Couldn't had happened to a better company!

 

[eneq]

Mostly due to the legal dispute with Apple, there are other companies involved in this battle but it's all orchestrated by Apple to battle their growing issue with Android.

 

[Verge]

Mostly due to the legal dispute with Apple, there are other companies involved in this battle but it's all orchestrated by Apple to battle their growing issue with Android.

AAPL has 250 billion in cash.


Yes, they are terrified.

 

[eneq]

AAPL has 250 billion in cash.


Yes, they are terrified.

Not sure they are terrified, think you jump to conclusions.

However from a market strategy point iOS market share has been stagnant for a long time whereas the Android market share just continues to climb even though Android has been considered "lesser" for a long time, this is changing rapidly as OEMs continue to evolve their products whereas Apple seems to be treading water.

Any product company would make efforts to protect their business under those circumstances.

 

[gunbust3r]

Hey they have Windows 10 on ARM coming. Oh I just read that again. Haha yeah RIP qualcomm

 

[eneq]

Hey they have Windows 10 on ARM coming. Oh I just read that again. Haha yeah RIP qualcomm

Yeah that has historically been a problematic area but its not Qualcomm who launches this product its Microsoft. Also I am not sure it'll be the flop people expect, this revision of windows on Arm supports x86 emulation so no recompilation and I also heard that power consumption is unheard of.

Ofc. its not a gaming pc but I would expect it to be very competitive in the ultra-thin/chromebook segment.

 

[Deleted member 93354]

I think apple is reading the tea leaves of their future profitability. PtoE ratio can't be this high any more without justification. Considering that the last two launches of iPhones have resulted in lackluster sales, I can see why they are jacking the price ($1200) and cutting licensing cost where they can.

Still is Qualcomm has valid patents, they have valid patents. You can't do much about that unless you can reverse the patent by showing previous art/work, or triviality of the patent. (ie: Our can opener has a handle...trivial as all can openers need a handle of some sort.)

 

[Deleted whining member 223597]

I think apple is reading the tea leaves of their future profitability. PtoE ratio can't be this high any more without justification. Considering that the last two launches of iPhones have resulted in lackluster sales, I can see why they are jacking the price ($1200) and cutting licensing cost where they can.

Still is Qualcomm has valid patents, they have valid patents. You can't do much about that unless you can reverse the patent by showing previous art/work, or triviality of the patent. (ie: Our can opener has a handle...trivial as all can openers need a handle of some sort.)

Lackluster? Only last year was a bit lower, as expected since the iPhone 7 was the same basic design as the 6, 6s and the 8 is expected to be a bit change. https://www.statista.com/statistics/267728/apples-net-income-since-2005/

 

[Deleted member 93354]

Lackluster? Only last year was a bit lower, as expected since the iPhone 7 was the same basic design as the 6, 6s and the 8 is expected to be a bit change. https://www.statista.com/statistics/267728/apples-net-income-since-2005/

When I say lackluster, I mean below apple's expectations. That includes the apple watch. Whatever apple doesn't sell well and immediately, they brush under the rug like it didn't happen in order to avoid tarnishing their golden image. (ie:Apple branded TV (dead before out the door), iCar (dead before out the door), Apple TV Box, iWatch 1, etc...)

It's kind of writing on the wall when things start selling below expectations. So either you have to innovate, cut corners, find an additional revenue stream (custom ports), or a combination thereof.

I've always said, apple has had an absurd about of money for a long time now. It isn't that I want them to fail. But that's what you get with a closed off eco system that is focused on profits. It doesn't matter how great the product is. It will still die a slow death when an open system replaces it. Android is growing. Apple is not. That means their market share is dwindling.

 

[Uvaman2]

What is the risk involved for Apple?
Losing of course, would mean back-pay, and new payments, and what else?
Winning though, wouldn't it involve risk too?
Depending on how and why they win, wouldn't it make it easier for other companies go against in similar ways for patents even Apple themselves own?