Shares in Qualcomm rose 54 cents or one percent to $54 dollars in after hours trading. In the
year-ago quarter, the chipmaker reported earnings per share of $1.07 on $6.2 billion in revenue.
Positive news about Qualcomm also included the recent announcement that there will be Microsoft laptops powered by the company's Snapdragon 385.
The legal battle with Apple was outweighed by the strength of its business with Android handset makers such as Samsung, Alphabet, LG, and Xiaomi.
Looking forward to 2018, Qualcomm sees sales being buoyed by its increasing penetration of the 3G and 4G market, as well as growth in both the area of handset and Internet of Things (Iot) markets, according to the CEO Steve Mollenkopf.
Qualcomm's improved numbers was in large part due to the company's growth in China.
Mollenkopf said that as new technology rolled out such as 5G connectivity, the company was well placed to win a significant share of the new markets: “We are very excited about the increased momentum of 5G around the world."
Qualcomm law suits
In April Apple sued Qualcomm for about $1 billion last January, for charging a heft fee for using technologies claims Apple maintains Qualcomm should not be associated with. Apple also claimed Qualcomm owed it payments.
The issue is that Qualcomm charges a percentage of the total price of iPhones and other Apple products as a a fee for using some Qualcomm patents. Qualcomm has counter-sued, claiming patent infringement. In July, Qualcomm asked U.S. trade regulators to halt the sale of imported iPhone and iPads in the United States. Qualcomm alleges that technology purchased by Apple from its rival Intel violated six of Qualcomm's patents.
The
US Federal Trade Commission filed an anti-trust lawsuit against Qualcomm, also in January, for charging high fees for the use of its technologies using the fact that it was the leading supplier in the industry.
Qualcomm had already been fined $774 million by the Taiwanese regulatory agency for violation of anti-trust regulations in a ruling last October that Qualcomm said it would appeal. South Korea also fined the company $854 million for anti-competitive practices. China fined the company $975 million back in 2015.
The legal fracas with Apple and other law suits have taken their toll on Qualcomm's share price that has dropped over the year by more than 18 percent. Apple has designed iPhones and iPads that will no longer use Qualcomm chips, according to Reuters, citing two people familiar with the matter
Acquisition of NXP
A bright spot for Qualcomm is its recent approval by the US government of its $47 billon bid for NXP that manufactures semi-conductors. Earlier, NXP's management said Qualcomm's $110 per share offer was a good deal for its shareholders. The deal is expected to be wrapped up by early 2018.
The acquisition should put Qualcomm in a good position to compete with rival chip makers Nividia and Intel in the growing market demand for new automotive technologies, as well as technology for smart homes and manufacturing.
Qualcomm's headquarters are in San Diego California.
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