Qualcomm is producer of mobile processors and chips for wireless communication. The headquarters of the company is located in San Diego (the State of California, the USA).
As of August, 2018, among the main activities there is Qualcomm:
The developments focused on permanent performance improvement, efficiency and also on improvement of opportunities of wireless connection for users.
Creation of new services, connection to network of the new industries and devices.
Development of the platforms using the integrated energy saving solutions for different options of use of robots.
Consolidation of opportunities of the systems of assistance to driving (ADAS) and the systems of autonomous cars for creation of set of the various sensors providing perception of surrounding space and positioning which will allow to increase security and autonomy of vehicles.
Production of platforms with ultralow energy consumption, processors and accelerators of the latest generation and also development of the improved CMOS technologies.
Financial year comes to an end at the end of September.
2018: Revenue of $22.7 billion; losses of $4.9 billion
In 2018 financial year revenue of Qualcomm made $22.7 billion against $22.3 billion the previous year. The reporting 12-month period came to the end on September 30 the 2018th calendar.
Annual revenues of division of Qualcomm CDA Technologies which is engaged in development and sale of chips reached $17.3 billion that is 5% more than an indicator of year prescription. The company delivered 855 million chips that is 6% more in comparison with 2017 financial year.
In division of Qualcomm Technology Licensing (QTL) which uses an extensive patent portfolio of Qualcomm for licensing of technologies to other companies revenue decreased by 20%, to $5.2 billion.
2018 financial year was deeply unprofitable for Qualcomm: net losses made $4.9 billion whereas the previous year profit equal to $2.5 billion took place. Monetary losses are caused by mainly single expenses in $6 billion in connection with updating of the American tax law.
Besides, Qualcomm paid $2 billion compensation for failure of the transaction on purchase of semiconductor company NXP Semiconductors and $1.2 billion a penalty according to the decision of European Commission. $687 million more were spent for restructuring, including for reduction of number of staff, and the American chipmaker paid $676 million for benefit of the Taiwan antimonopoly regulator which found Qualcomm guilty in abuse of the dominating positions in the market.
In day of the publication of financial statements of quotation of Qualcomm dropped by 3.4%. The weak forecast for sales for a final calendar quarter of 2018 and contract cancelation with Apple affected. Qualcomm hopes to offset loss of orders sales increase of chips to the Chinese smartphone manufacturers. The chief financial officer of Qualcomm George Davies told Reuters that brands from Celestial Empire release more and more expensive devices using chips of the Qualcomm Snapdragon 700 and 800 series.
Qualcomm demands from the companies too much money — court's decision
Qualcomm illegally podavlivat the competition in the market of mobile chips and used the dominant position to demand too big licensing fees from the clients. Such decision was made by the federal judge Lucy Koh.
According to her, Qualcomm violated the antitrust law, levying unreasonably high assignments for the patents and squeezing out competitors from the market. It is about a royalty — percent from sales of smartphones.
| ||The used Qualcomm of the practician of licensing for many years smothered the competition in key segments of the market of modems … and caused damage to competitors, equipment manufacturers and end consumers, said in the court order.|| |
Lucie Koch added that leadership of the company regarding development of a 5G chips for smartphones can lead to the fact that such behavior of Qualcomm will remain.
The judge demanded that Qualcomm revised license agreements with clients and eliminated in them dishonest conditions, in volume of threat of reduction or termination of deliveries of chips.
Qualcomm will also have to license the patents to the competing semiconductor producers on fair conditions and on reasonable prices. The companies prohibited to sign exclusive agreements with smartphone manufacturers, for example, with Apple which interfere with sales of chips by competitors.
Besides, the chipmaker is obliged to report annually within seven years to Federal trade commission on observance of judicial requirements.
In day when this judicial verdict was rendered, stocks of Qualcomm fell in price by 10.9%, and market capitalization was reduced by $10 billion.
The general counsel of Qualcomm Don Rosenberg said that the company "categorically does not agree with the judge's outputs, its interpretation of the facts and application of the law".
Qualcomm punished Apple and will receive $6 billion and $9 from each sold iPhone
In the middle of April, 2019 Qualcomm and Apple signed the conciliatory agreement as a result of which the companies refused mutual claims and contracted all judicial and patent proceedings. Analysts of UBS investment bank counted how much this truce will cost to iPhone producer.
Under the terms of the agreement, Apple should pay Qualcomm a certain amount one-time. UBS estimates it at $5-6 billion. Earlier it was reported that suppliers of Apple owed to Qualcomm about $7 billion a royalty for use of the patented technologies.
Within the arrangement between technology giants also the license agreement about payment of a royalty by Apple company for the chips created on technology of Qualcomm was signed. About what assignments there is a speech, officially did not announce.
However Qualcomm specified that this transaction will increase by $2 the profit of the company counting on one action. According to calculations of UBS, the Apple company will pay Qualcomm from $8 to $9 for each sold iPhone. In earlier published court documents it was reported about $7.5.
Analysts say that settlement of the conflict which extended to several continents cost much to Apple, however because of these trials the corporation could not manage to release phones with support of a 5G. Intel which is a key supplier of modems (chips for connection of devices to cellular networks) for iPhone, officially refused to create such solutions for mobile devices, compatible to a 5G. Other producers, except Qualcomm which is not able to supply Apple with the large volume of a 5G modems.
Exit with iPhone with support of networks of fifth generation is expected in 2020. If it does not occur, then Apple will strongly lag behind competitors who in 2019 began to release a 5G tube.
In three days from the moment of the declaration of the agreement of Apple and Qualcomm of a stock of the companies rose in price for 2% and 38% respectively.
The court obliged to return Qualcomm to Apple the promised discounts to $1 billion
On March 14, 2019 district court of the USA across the Southern federal district of California obliged to pay Qualcomm to Apple the amount of $1 billion which the American chipmaker promised to transfer to iPhone producer as a discount for exclusive use of modem chips (are used for connection of phones to cellular networks).
Such arrangement appeared in the agreement on patent assignments which was signed by Qualcomm and Apple. In connection therewith the agreement the contract producers assembling phones for Apple pay Qualcomm of a royalty for use of the patented technologies, and Apple refunds expenses to partners. As notes Reuters agency, contract employees with whom Apple cooperates had to transfer to Qualcomm billions of dollars annually.
Qualcomm promised Apple to compensate a part of payments for patents if the last does not file a lawsuit or address regulators with complaints concerning the chipmaker. However at some point Qualcomm ceased to pay compensations, having stated that Apple violated arrangement conditions.
According to Qualcomm, the Apple company began to urge other smartphone manufacturers to complain to regulators and made "false and misleading" statements of the Korean commission on fair trade.
The American court supported Apple and decided that Qualcomm will have to return to the opponent the promised $1 billion.
| ||Illegal business practice of Qualcomm harms Apple and all industry, said in the statement of Apple.|| |
The general counsel of Qualcomm Don Rosenberg said that the court does not consider behavior of Apple as breach of agreement about business cooperation and patents of 2013 (2013 Business Cooperation and Patent Agreement), but disclosure of a role of Apple in these events became a long-awaited event.
Sale of business on release of the medical equipment
On February 11, 2019 Qualcomm announced sale to the subsidiary company Qualcomm Life specializing in the medical equipment. Business passed private investment company Francisco Partners and received the new name — Capsule Tech as after closing of the transaction the company will independently work. Read more here.
Qualcomm paid Apple of $1 billion to become the only supplier of chips for iPhone
That Apple demanded from Qualcomm "the stimulating payment" in the amount of $1 billion for an opportunity for the American chipmaker to deliver modem chips (are used for connection of phones to cellular networks) alone, the CEO of Qualcomm Steve Mollenkopf in federal court in San Jose told. The iPhone producer wanted to use these means for compensation of the technical expenses connected with transition from Infineon Technologies chips to products of Qualcomm.
According to Mollenkopf, incentive payments are customary practice in work with clients, but so large sum which was requested by Apple, the Qualcomm company did not pay earlier.
Qualcomm became the only thing of suppliers of modems for iPhone in 2011 and undertook to give to Apple a discount when purchasing chips which amount does not reveal.
Steve Mollenkopf told in court that Apple did not provide any guarantees concerning the number of chips which it was going to order. Terms of agreement assumed that Apple could attract other suppliers, however in this case the corporation would lose a discount and would buy chips at the standard prices.
However Apple was all the same dissatisfied with work with Qualcomm because of big royalty. Apple paid Qualcomm for $7.5 for each sold smartphone, but considered reasonable assignments in the amount of $1.5.
According to the operating officer of Apple Jeff Williams, the company wanted to use modems of Qualcomm in the iPhone XS, XS Max and XR models, however the chipmaker refused to sell chips after the beginning of judicial proceedings.
IPhones in China upon the demand of Qualcomm prohibited to sell Apple
On December 14, 2018 Apple announced release of the update for iOS thanks to which the company hopes to avoid prohibition on sales of some iPhone models in China. This ban is imposed in the claim of Qualcomm which accused the opponent of violation of two patents. Read more here.
Reduction of the staff of division on release of solutions for DPCs since 1000 to 50 people
At the beginning of December, 2018 it became known of a 20-fold personnel decrease in division on release of solutions for data centers of Qualcomm — from 1000 people who worked in 2018, up to 50 employees earlier.
About mass layoffs wrote the The Information edition to Qualcomm, referring to the sources. The representative of the company in a conversation with the CRN portal confirmed liquidation of workers a position, but noted that personnel cleaning affected "several divisions", and not just business in the field of technologies for DPCs.
| ||Qualcomm reduces investments into DPC-business, but remains to committed business obligations and future computing opportunities on border of 5G networks and to cloud solutions for artificial intelligence. Qualcomm is going to support further the server enterprise, joint with HXT company, in China. We are fully concentrated on implementation of our 5G program — said in the American company.|| |
The carried-out dismissals became the next sign of reduction of ambitions of Qualcomm in the market of chips for the equipment of data centers on which Intel dominates. Within this business of Qualcomm invested hundreds of millions dollars and also attracted a number of large customers, including Microsoft and Hewlett Packard Enterprise, Bloomberg tells.
According to news agency, efforts of the chipmaker were vain after failure attempt of Broadcom to purchase Qualcomm. As a result the server division lost potentially big financial support, and investors of Qualcomm came to need to reduce costs. Besides, judicial opposition with Apple affected.
According to the statement of Qualcomm, since February, 2019 the company will begin to reduce 269 jobs at offices in San Diego (California) and Roly (Northern Carolina).
Qualcomm: Apple owed us $7 billion
During court session which took place on October 26, 2018 the representative of Qualcomm said that Apple ran into debt the companies of $7 billion as payments for use of patents.
Apple categorically denies such debt and states that Qualcomm forces to pay for the same patents twice as in iPhone the semiconductor producer already received money for use of chips.
Qualcomm insists on legality of the practice and claims that Apple tries to destroy the business model offered Quaclomm after many years agreed to it.
Apple filed a lawsuit against Qualcomm, having accused the opponent of abuse of the market position. The iPhone producer claims that Qualcomm, being the largest producer of chips, set "enslaving, unreasonable and expensive" licensing terms of the patents and also did not give to Apple the chance to select other supplier of chips. The amount of claims — $1 billion.
Qualcomm submitted the counter action to Apple, in turn, having accused the company that it violates the signed agreements and arrangements, interferes with agreements of Qualcomm with the third companies, pursues Qualcomm by means of regulators in the different countries of the world and also "does not use the complete capacity of chips from Qualcomm in smartphones.
At the end of September, 2018 Qualcomm accused Apple of theft of confidential information and commercial secrets with the subsequent data transmission of Intel company.
| ||Illegal use of production secrets of Qualcomm with the purpose to help the competitor to catch up with us causes us irreparable damage. It is impossible to assume that it proceeded — the executive vice president of Qualcomm Donald Rosenberg said then.|| |
Failure from purchase of NXP for $44 billion and payment of a penalty in $2 billion
The announcement of the first modules 5G NR for millimetric range
In 2018 the Qualcomm company provided the first modules 5G NR for millimetric range and radio modules with support of frequencies to 6 GHz.
Earlier signals in the millimetric range were not used for mobile wireless communications because of a large amount of technical and constructive difficulties. The modules QTM052 mmWave working in a tandem with Snapdragon X50 5G modem allowed to overcome these obstacles thanks to what OEM manufacturing could get access to high speeds of a 5G of NR mmWave, without changing at the same time industrial design of the devices.
Qualcomm reduces the staff
Qualcomm began large-scale staff reduction within the program of economy, aim which — to reduce costs for $1 billion according to sources of Bloomberg, as a result of reduction of work can lose to 1.5 thousand employees. ABC TV channel 10 News, based in San Diego, the USA, i.e. in the same city, as Qualcomm, also announces dismissal more than 1 thousand workers, with reference to own sources.
Reductions will affect both temporary, and permanent employees. Qualcomm reported that it at first considered other schemes of expense reduction which do not assume dismissal of employees. However the decision on staff reduction for the sake of the long-term growth and the benefit of shareholders was made afterwards.
The U.S. President blocked sale of Qualcomm to the Singapore competitor
USA Donald Trump Donald Trump issued the presidential decree blocking merger Broadcom of the American producer of semiconductors of Qualcomm by the Singapore company in March, 2018. Trump specified reasons of national security as the prohibition reason.
According to the text of the decree, there is "reliable evidence" that if Broadcom purchases Qualcomm, then it "can take actions which threaten with deterioration in national security of the United States".
Let's remind, Broadcom intended to redeem Qualcomm for $117 billion. The transaction had to become the largest acquisition in the history of the electronic industry. It would eclipse acquisition of EMC company by equipment manufacturer Dell for $67 billion in 2015.
Fine of 1 billion euros for rollbacks of Apple
On January 24, 2018 the European Commission which is the main antimonopoly regulator in Europe stated that Qualcomm is fined almost 1 billion euros for rollbacks for benefit of Apple.
| ||Qualcomm paid billions of U.S. dollars to the key client — Apple — for that that did not buy chips from competitors — the member of European Commission concerning the competition Margrethe Vestager says. — These payments not just reduced the price — they were made as a condition that Apple will entirely use baseband-chipsets of Qualcomm in all the iPhones and iPad. It meant that any other company could not compete effectively with Qualcomm in this market what good would not be its products.|| |
According to the decision of European Commission, Qualcomm will pay 997 million euros or 4.9% of revenue for 2017. At the same time no sanctions on Apple for attempts of Qualcomm are provided in the market monopolizations.
According to analysts of Macquarie Capital, in 2016 Qualcomm sold Apple of a baseband-chip, used for connection of mobile devices to mobile networks, for the amount about $3.2 billion that approximately corresponds to the tenth part of revenue of the American chipmaker. At the same time payments of Apple by patents for benefit of Qualcomm made about $2.6 billion.
Experts say that technologies of Qualcomm in certain aspects exceed products of competitors. In particular, the company offers the mobile chip with support of data transmission at a speed of 1 Gbps whereas Intel and MediaTek did not show such indicators in the commercial products yet.
It is said in the statement of European Commission that internal documents of Apple give the grounds to believe that during cooperation with Qualcomm the company planned partial change to the supplier and considered option with Intel. But regulations on exclusivity of deliveries of Qualcomm became an important factor in the solution of smartphone manufacturer not to change the supplier. Since September, 2016 when operation of the contract with Qualcomm came to an end, Apple began to buy chips from Intel partially.
Reduction of revenue for 5%
Qualcomm is the largest producer of chips in the world for mobile devices from market shares of 42% according to Counterpoint Research. The global staff of Qualcomm as of September, 2017 contained 33.8 thousand permanent and temporary employees. About 3.3 thousand from them were employed within 2017 financial year.
Revenue of vendor in financial 2017 which came to the end in September made $22.3 billion that is 5% less, than in 2016. Net profit was $2.5 billion, having shown annual recession for 57%.
Broadcom suggests to purchase Qualcomm for $130 billion
At the beginning of November, 2017 the Broadcom company, one of world leading manufacturers of chips, proposed purchase for $105 billion the American chipmaker Qualcomm. The transaction, in case of its conclusion, will become the largest absorption in 2017: the volume of transaction is estimated approximately at $130 billion, including a 25-billion debt of Qualcomm. However informed sources of Bloomberg warn that to achieve merge will be very difficult as Qualcomm intends to resist absorption.
For an opportunity to attach to the assets of the largest producer of mobile Broadcom chips about $ dollars 70 are ready to pay for each stock of Qualcomm that is 28% more than stock exchange rate of the chipmaker as of November 2 before the first messages about the planned transaction appeared.
According to the agency, Qualcomm considers the offer which arrived it, but inclines to rejecting it, including underestimated the called amount. However, Broadcom on it will not stop and in case of refusal directly will address shareholders of Qualcomm, Bloomberg with reference to anonymous insiders tells.
| ||We made very reasonable and convincing proposal. The conditions which are laid down by us are very reasonable and friendly in relation to all involved parties, in particular, to shareholders — the head of Broadcom Hock Tan said concerning the preparing transaction.|| |
Merger of Qualcomm will become the milestone event significantly changing alignment of forces in the semiconductor industry: Broadcom will turn into the third largest chipmaker in the world conceding only to Intel corporation and South Korean giant Samsung Electronics. The joint business will be responsible for delivery of a number of components for smartphones which annual sales volume exceeds one billion pieces.
Demanded to prohibit Qualcomm sale and production iPhone in China
"Apple uses the technologies invented by Qualcomm and does not pay for them" — the representative of the Chinese company Christine Trimble told.
Claims of Qualcomm concern three patents, notes the agency. At the same time jurisdictional disputes of two companies last for months. In January Apple demanded in court $145 million from Qualcomm.
Penalty in 800 million for monopolistic activity
On October 11, 2017 the Taiwan authorities fined Qualcomm almost $800 million for monopolistic activity. This large monetary collecting became not the first for the American producer of microprocessors.
The commission on fair trade of Taiwan (Fair Trade Commission, FTC) imposed on Qualcomm a penalty, record for the country — in the amount of 23.4 billion Taiwan dollars (about $774.14 million).
The company is recognized by monopolist in the market of chips of CDMA, WCDMA, LTE and guilty of antitrust violation within more than seven years. During this time the chipmaker collected about 400 billion Taiwan dollars of license and other payments from the local companies. FTC considered these payments excessive and also reported that Qualcomm illegally interfered with access to the patents connected with standards of mobile communication.
In addition to payment of a penalty, Qualcomm will have to send each half a year to the commission reports on the course of negotiations with affected parties.
Besides, transactions in which the company forced competitors to provide confidential information, including data on the prices, names of clients, supply rate and model designations of products respond.
Qualcomm expressed categorical disagreement with the solution of the Taiwan antimonopoly regulator and is going to submit the appeal.
| ||This penalty has no rational relation to total revenue or business of Qualcomm on Taiwan. The company will appeal against the amount of a penalty and the method used for its calculation — said in Qualcomm.|| |
In 2015-2016 the South Korean and Chinese authorities fined Qualcomm total amount nearly $1.9 billion for antitrust violation. In both cases the company could not appeal against solutions and paid the required amounts.
The patent on "the Internet footwear"
In May, 2017 on the website of Management of patents and trademarks of the USA the application submitted in 2015 from Qualcomm corporation is published. The document is entitled "The Internet of footwear" (Internet of Shoes).
The request describes "the shoe device having communication means which includes: processor; the memory device integrated to the processor; radio module; antenna; magnetometer; at the same time the built-in shoe device can rush the person as normal footwear, and the processor should: determine orientation in space of the shoe device by the magnetometer and broadcast information on the direction to the second device using the antenna".
In the request it is also specified that the boots or sneakers connected to Network will help the user with navigation and that the battery which is charged from piezoelectric motors at the movement will be a source of their power supply.
The "smart" (computerized) footwear - any more not a fantasy: Nike, for example, with might and main sells "chipirovanny" sneakers which send on the user's smartphone signals of quantity of steps , etc.
Qualcomm assumes that "smart" footwear will perform the far bigger number of functions: except navigation and calculation of steps, it is supposed to monitor heartbeat and blood pressure of the user, using vibration "recommend" to accelerate or shorten a stride.
As for connection to the Internet, even if it looks something funny now, analysts expect that deliveries of wearable devices in general by 2020 will grow to 210 million units.
| ||Informatization and connection to the Internet of all on light - long ago the settled trend, - Ksenia Shilak notes, the sales director of the Russian company SEC-Consult - Sense of equipment of footwear processors and connections it to the Internet can seem unevident now, but once and about mobile phones asked why in them Internet access is necessary. Now such questions are asked by nobody. As nobody is surprised today, for example, to the refrigerators supplied with Internet servers.|| |
"The Internet of footwear" is only a special case of Internet of Things. For the last years experts in network security sound the alarm concerning the low level of security of IoT-devices which producers think of security a little. Massive IoT-botnets through which powerful DDoS attacks will be organized as was in a case with the botnet Mirai turned out to be consequence of it.
| ||Gradually everything will be connected to Network; even the fact that as it seems to us now, does not need it at all; however not the fact that security aids will be in time behind this process, - Ksenia Shilak continues. - We already heard about the refrigerators sending spam, IP cameras arranging DDoS attacks. It can seem amusing, but will not tell it, for example, about medical devices of type of the insulin pumps and pacemakers transferring and accepting data on the insecure channels. If developers of IoT-devices qualitatively do not change the attitude towards cyber security, "the Internet of footwear" will become one more factor of threat.|| |
Charges of Apple of persecution
On April 11, 2017 it became known that the Qualcomm company responded with the counter action to the charges of abuse of a dominant position brought to it by Apple in the market. The world's largest producer of chips for mobile devices claims that the creator of iPhone stands behind numerous checks of regulating authorities to which Qualcomm is exposed recently. Also the chipmaker accuses Apple of false declarations and violation of arrangements between the companies.
In the claim of Apple sent to the American court in January, 2017 it was said that Qualcomm unreasonably overstated the price of the products and refused to provide the promised discount for $1 billion to the partner in release of iPhone. Practically along with Apple a similar complaint to Qualcomm was made also by the Federal commission on trade of the USA (FTC). The regulator accused the chipmaker of anti-competitive behavior for the purpose of preserving of monopoly for key semiconductor components for mobile phones.
Meanwhile, in the response claim Qualcomm stated that Apple actually arranged on it persecution by means of regulators.
| ||Having the huge influence in the industry, Apple initiated a global attack to Qualcomm and tries thus to force the company to agree to unfair and unreasonable licensing terms, says Qualcomm from which excerpts are given by Reuters agency.|| |
Also follows from the complaint of Qualcomm that Apple violated the existing arrangements and interfered with agreements of Qualcomm with other companies. Plus to it, the claimant claims that Apple lay when it declared lack of performance differences of two modifications of iPhone — with chips of Qualcomm and the competing vendor — Intel. According to the chipmaker, Apple "using threats" forced to be silent about it therefore Qualcomm could not state publicly about superiority of smartphones with the technology.
Apple brought the suit for $1 billion the promised ribeyt
On January 23, 2017 it became known of the legal claim of Apple against Qualcomm. The reason - "burdensome, unreasonable and ruinous" conditions of providing licenses for patents and failure of Qualcomm to provide ribeyta for the total amount of $1 billion for use of its modems of iPhone and iPad.
Qualcomm delivered to Apple radio modems for mobile devices, paying license royalty for use of patents of Qualcomm in the field of wireless communication. Apple declared failure of Qualcomm to provide it ribeyta for $1 billion allegedly in revenge for cooperation of Apple with antimonopoly service of South Korea, the investigating practice of licensing of Qualcomm.
According to the statement of Apple, "... the company deeply trusts in an innovation, and we were always ready to pay fair and acceptable royalty for the patents used by us. We are extremely disappointed how Qualcomm does the business with us, and, unfortunately, after many years of disagreements that it makes fair and proportional royalty, we did not have other choice except how to take legal action".
Stocks of Qualcomm decreased more than by 2.5% on these news.
Week earlier Federal commission on trade of the USA (FTC) brought the suit against Qualcomm, having accused her of unfair practice of licensing of the patents. FTC affirms as the claim that Qualcomm forced Apple on exclusive use of the chips in exchange for reduced license fees, as a result without having allowed to the transaction of competitors and interfering with free competition. Apple, in turn, stated in the claim for the requirement of Qualcomm "at least five times" more royalty, than other licensors.
"Being only one of more than dozens of the companies which made the contribution to fundamental standards of cellular communication, Qualcomm insists on levying from Apple at least five times bigger payment, than all other licensors of patents in cellular communication with which we have agreements, combined" — it is told in the claim of Apple.
Apple pointed to receiving quarterly ribeyt from Qualcomm within the agreement between two companies, but Qualcomm began to refuse these payments in 2016.
"Unfairly insisted many years of Qualcomm on collection of a royalty for technologies to which it has no relation. The more innovations enters Apple with the unique innovations, such as TouchID, the advanced displays, cameras, etc., the more money is raised by Qualcomm just like that and the financing of these innovations becomes more expensive for Apple" — the plaintiff company noted in the statement of claim.
Consider a fine of $1 billion unfair competition
On December 28, 2016 the antimonopoly regulator of South Korea fined Qualcomm record for the country — almost for $1 billion — for unfair competition. For the company this not first monetary collecting of this sort and the size.
According to the Bloomberg agency with reference to the statement of the South Korean Commission on fair trade (Fair Trade Commission, FTC), Qualcomm licensed the main patents only to producers of mobile phones and incorrectly settled licensing terms. At sale of mobile processors the American company, using the leading positions in the market, forced clients in South Korea to sign patent license agreements, and those were forced to pay for use of the patents belonging to other mobile phone manufacturers.
As a result of FTC Qualcomm ordered to pay a fine in the amount of 1.03 trillion wons ($853 million) which was the biggest in the history of the South Korean antimonopoly agency. Qualcomm called this solution "unprecedented and unjustified" and expressed the intention to appeal against it in the Supreme Court of Seoul. The resolution FTC does not become effective immediately, and Qualcomm will take legal actions with appeals, the general counsel of the company Don Rosenberg reported.
In addition to a penalty, the Commission on fair trade insists on that Qualcomm opened for producers of chips access to the key patents and ceased to put the clients in unequal conditions at signing of the contracts.
Besides, FTC requires that the patents of Qualcomm recognized establishing were available to licensing separately, but did not go to loading with sales of chips.
In February, 2015 Qualcomm was fined $1 billion for antitrust violation. In particular, the company was accused of illegal sale of licenses in the form of "packets" which in addition to technologies necessary for vendors entered also unnecessary them.
Announcement of the first of a 5G modem
In 2016 the Qualcomm company provided the first to a 5G modem of Snapdragon X50 which was involved in testings and field surveys of 5G networks, that helping OEM manufacturing to create the devices supporting a 5G.
Qualcomm announces purchase of NXP for $47 billion
On October 27, 2016 the American developer of mobile microprocessors Qualcomm announced NXP Semiconductors purchase. Acquisition value taking into account debts of the Dutch company will be about $47 billion. Thus, it is about the most large deal on merges and absorption in the history of the market of chips. Read more here.
Vulnerabilities in a product
On August 9, 2016 it became known of four vulnerabilities in chipsets of Qualcomm which created threat for users of 900 million Android devices. The company released updates, but it is unknown which of producers and operators and when, provided them to users.
Products of Qualcomm contain four vulnerabilities, each of which allows to get to the operating system of the device access with the administrator's rights. Researchers of Check Point Software Technologies company appropriated to this group of vulnerabilities the name QuadRooter.
QuadRooter contains in Samsung Galaxy S7 and S7 Edge, LG G4, LG G5 and LG V10, Motorola Moto X, Sony Xperia Z Ultra, Nexus 5X, Nexus 6 and Nexus 6P, HTC One, HTC M9 and HTC 10, OnePlus One, OnePlus 2 and OnePlus 3, BlackBerry Priv, in the Blackphone 1 and Blackphone 2 smartphones with the strengthened protection, etc. All these smartphones are equipped with chipsets of Qualcomm.
Check Point estimated QuadRooter influence scope in digit> 900 million devices.
Vulnerabilities contain in drivers together with which chipsets of Qualcomm are delivered. They are intended for management of chipsets and the organization of interaction of their different components. Drivers are integrated by producers of devices into firmwares of devices.
The only way to eliminate vulnerabilities — to receive the corresponding updates from Qualcomm and to extend them among owners of devices. Only smartphone manufacturers and tablets, and operators who are engaged in distribution can make it.
At QuadRooter operation malefactors can get full access to personal user information on the device which was not ciphered, can install the keylogger (the keyboard reader), to keep track of the current location of the owner, to turn on the camera and the microphone.
Researchers of Check Point at the beginning of 2016 reported information on vulnerabilities of Qualcomm company. It corrected all four vulnerabilities and provided updates to producers of devices and mobile operators. Which of them extended updates, unclear.
According to the statement of representatives of Google, the users who set the latest version of Android with all updates are protected from three of four vulnerabilities of QuadRooter. The release of last "patch" is planned "in the nearest future".
Employees of Qualcomm earned $19.5 million from the sexual discrimination
Several months of negotiations later the largest producer of mobile processors Qualcomm agreed to settle in a pre-judicial order the collective complaint about sexual discrimination by payment of $19.5 million. The Sanford Heisler law company acting on behalf of about 3.3 thousand women who appended the signatures under the complaint reported about it. They were dissatisfied with the fact that Qualcomm aims to employ more men, than women, on the positions connected with scientific and technical work.
As noted in the message of firm, means will go for payment of material support. Under the law money can go for compensation of harm and a lost profit, payment of the penalties and expenses incurred by claimants. Lawyers did not specify whether the specified amount any of these articles will cover.
Actual expenses of Qualcomm will be more as the company at the same time agreed to make the changes in the corporate policy directed to overcoming gender inequality in the state and creation of identical opportunities for career development to women and men.
The company undertakes to select two consultants who will monitor observance of equal conditions, and will appoint the director of compliance who will monitor implementation of the updated corporate policy. In addition, the vendor promised to select occasional seats for women in leadership team (them 15% there now).
Reduction of revenue to $25.3 billion and profit
According to the results of 2015 financial year revenue of Qualcomm was reduced by 5% from $26.5 billion to $25.3 billion that it is much worse than forecasts. According to the forecast for 2015 financial year revenue had to be in range from $26.8 mdrd to $28.8 billion. Growth from 1% to 9% year-on-year was expected.
Operating activities revenue on Non-GAAP approximately from $9.2 billion to $10.0 billion, growth from 3% to 12% year-on-year. Upon this indicator it appeared at the level of 8.6 billion (-4% year-on-year).
Total sales of devices were expected at the level approximately from $240.0 billion to $270.0 billion, from-1% to +11% year-on-year. A final result - $250.9 billion (+3%).
Qualcomm remains the market leader of processors for smartphones. In 2015 a market share In 2015 the Qualcomm company reserved a market leadership of processors for smartphones with a share about 42%, Business Korea reports.
The Apple company (21%), whose corporate "systems on a crystal" was at the second place families A are applied only in its own devices. The third place of rating is held by the Taiwan MediaTek (19%): its solutions are used mainly in products of producers of the second echelon.
The fourth place at Samsung company. In 2015 the integrated processors of the Exynos family were used approximately in 15% of the Samsung smartphones. In total the company produced about 50 million processors of the specified series. They found application not only in offices of Samsung, but also, for example, in a number of models of Meizu.
The fifth place in the rating of the largest producers at Spreadtrum company.
Release of the wireless charger for mobile phones
In 2015 the Qualcomm company released wireless chargers for mobile phones with the metal body. The WiPower technology for wireless charging of mobile devices differs from Qualcomm in bigger degree of flexibility and convenience, erasing former borders of application, claim in the company.
Qualcomm is suspected of violation of the law
On July 16, 2015 it became known of the beginning of two investigations concerning Qualcomm from the European authorities - they try to clarify the facts of antitrust violation.
Recently the company the authorities of China almost for $1 billion owing to violation of laws on fair competition punished
For July 16, 2015 the European Commission initiated two investigations concerning Qualcomm. Need to determine the facts of violation of laws on fair competition formed the basis. It is supposed to find out whether the Qualcomm company bribed the staff of smartphone manufacturers that they agreed to purchase of chipsets of Qualcomm, refusing purchase of chipsets of other vendors. Or for purchases at Qualcomm of bigger volume. The first investigation team will be engaged in it.
The second investigation of the power was aimed at check of the facts of artificial understating of the prices of Qualcomm of the products — below cost. The company could do it to press from the market of the competitors not capable to resist to aggressive dumping.
"We opened two new investigations because we want to be sure that demand is defined by technological effectiveness of products. Electronic devices are very popular. We want that consumers paid for quality upon their purchase" — Margrethe Vestager, the commissioner for the competition emphasized.
Investigation about bribes is begun by European Commission on its own initiative. The second investigation is initiated after obtaining the complaint.
According to statements of representatives of Qualcomm in Russia, the company was notified that the European Commission "initiated trial" concerning two aspects of activity of Qualcomm regarding sales of mobile processors. It will allow to collect the additional information about activity of the company, however is not, either merits of case, or the indictment. The company renders assistance to collection of information and cooperate with European Commission.
Restructuring of Qualcomm
On July 22, 2015 Qualcomm announced staff reduction and restructuring plans which can include separation of business of the American company. The semiconductor producer will resort to these measures against the background of financial problems.
It agrees to the statement made by Qualcomm, the number of employees, workers full time, it will be reduced by 15%. Also the number of temporary employees will "considerably" be laid off. As of the end of 2014 the staff of the company totaled 31,300 people. Taking into account the announced dismissals of work more than 4500 people will lose, the The Wall Street Journal newspaper notes.
Besides, Qualcomm is going to cut down for $300 million compensation in the form of actions to the employees. Staff reduction will cost the company approximately $350-450 million. At the same time the chipmaker promises to reduce expenses approximately by $1.4 billion.
In addition to economy on personnel, Qualcomm is going to reduce costs due to optimization of the staff list of engineering departments, reduction of number of offices and consolidation of some of them and also by means of transfer of a number of divisions to regions with lower expenses.
At the same time the company will continue active product development and mastering of the new markets. For these purposes, for example, the semiconductor vendor intends to invest annually to $4 billion in R&D-направление. In particular, it is going to develop automobile and a 5G technology.
Rumors about separation of business of Qualcomm persistently went to media. Though the company disproved them, in the new statement of July 22, 2015 it nevertheless allowed similar restructuring. One of options selection of business in the field of licensing in new firm is considered.
The CEO of Qualcomm Steve Mollenkopf promised to look in a new way at a possibility of separation of the company in the conditions of the escalating competition and to consider "any options promoting maximizing shareholder value of the company".
Qualcomm really needs business transformation, considering its falling income. According to the results of the third financial quarter closed on June 28, 2015 revenue of the company decreased by 14%, and net profit – for 47%.
Qualcomm purchases Ikanos
Reason for purchase - technology of high-speed wire communication.
Ikanos conducts developments of G.fast and Qualcomm technology developments in the field of ADSL and VDSL technologies, chips and accelerators for network gateways of LTE and Ethernet will get. With Ikanos Communications acquisition the Qualcomm company will receive technologies of broadband wire communication G.fast in the order and will be able to provide their support in the home gateways released by it.
G.fast works only at small distance, approximately up to 250 m, but provides data transmission on copper wires with a speed of hundreds megabits per second. Engineers of Ikanos on tests in Japan and Korea could achieve speed more than 1 Gbps at distance hundreds of meters. Because of small range the main field of use G.fast - connection of subscribers to access points.
The access point connected to fiber-optical network it is possible to locate, for example, in the cellar of the building. Qualcomm attaches great value to Ikanos acquisition, apparently: the company suggested to redeem shares of Ikanos at the price in $2.75 whereas at the exchange their rate only of $1.75 and also to repay all transactions of debt which are available by the time of closing.
2014: Record financial results of year
Record results of 2014 financial year:
- Record revenue: $26.49 billion, growth of 7% year-on-year, according to effective objectives.
- Record levels of supply rates of MSM processors: 861 million units, growth by 20% year-on-year.
- Record total sales of devices: $243.6 billion, growth of 5% year-on-year.
- Record levels of the amount received by shareholders: $7.13 billion, including $4.55 billion through share repurchase of 60.3 million ordinary shares and $2.59 billion, or $1.54 for an action in the form of dividends.
Testing of Snapdragon 800 and 600 processors by QTI company
2013 — the First smartphone with support of LTE Advanced
In February, 2013 QTI provided the addition to the Gobi Embedded Platform platform allowing to increase the transmission rate of LTE data to 150 Mbps, supporting aggregation of frequencies and providing additional frequency ranges for LTE networks worldwide.
Snapdragon processors — at the heart of the first smartphone with support LTE Advanced@
Growth of turnover by 36% because of a boom of smartphones
Revenue of the American supplier of ARM chips for the Qualcomm smartphones according to the results of 2010-2011 financial years which came to the end on September 25, 2011 made $14.96 billion that is 36% higher in comparison year-on-year. Net profit grew by 31% to $4.26 billion.
In the IV quarter of ended 2011 financial year revenue of Qualcomm grew by 39% to $4.12 billion, profit on Non-GAAP reached 80 cents on an action. Both indicators appeared above forecasts of the analysts polled by FactSet. The last expected to see revenue at the level of $3.99 billion and earning per share on Non-GAAP - at the level of 78 cents.
Record levels of the company are caused by high demand on iPhone and smartphones on the Android platform in which chips of Qualcomm are used. In the company with optimism look forward, anticipating more active junction on LTE technology next year.
Start of the AR platform for Android smartphones
Snapdragon chipsets with a frequency of 2.5 GHz
In 2011 the Qualcomm company announced release of a line of chipsets of Snapdragon of the next generation for mobile devices. The processor microarchitecture with the code name Krait provided frequency to 2.5 GHz on a core and increased overall performance by 150%, also lowered energy consumption by 65% in comparison with processors available at that time based on architecture of ARM. The chipsets provided to one - two - and quad-core versions, included a line of the graphic processors Adreno with support to four cores the 3D and also integrated multimode LTE modem.
In 2011 Qualcomm announced acquisition of the Atheros company specializing in area of the innovative technologies for wireless and wire local relationship applied in network, computer and home appliances.
Tests of the first dual core chipsets of Snapdragon
In June, 2010 the Qualcomm company tested the first dual core chipsets of Snapdragon. Two improved cores from Qualcomm — with a frequency up to 1.2 GHz are integrated into a chipset of MSM8x60TM (Mobile Station Modem).
According to representatives of the company, the expanded platform of chipsets Snapdragon allowed to define in a new way possibilities of mobile devices worldwide, offering an unprecedented combination of performance, powerful multimedia opportunities, Internet access from any point and the optimized energy consumption that promoted emergence of the next generation of smartphones.
The number of connections 3G exceeded 1 billion
In many respects thanks to great demand for smartphones and for services of mobile broadband communication around the world the number of connections 3G in April, 2010 exceeded 1 billion (3G = CDMA2000, WCDMA and TD-SCDMA.)
The announcement of a multimode chipset with support 3G/LTE
In February, 2009 the Qualcomm company provided the first-ever multimode chipset with support 3G/of LTE.
In September, 2009 the number of subscribers of CDMA networks exceeded half a billion worldwide. It confirmed unshakable confidence of Qualcomm that once the given technology will play a crucial role in mobile communication at the global level.
Paul Jacobs is elected the chairman of Qualcomm
In 2009 Dr. Paul E. Jacobs was elected the chairman of Qualcomm company.
2008: Start of the first mobile device based on Android
In October, 2008 production G1 — the first-ever mobile device based on Android — equipped with a chipset of Qualcomm was started. Start of the T-Mobile G1 device made by HTC company became break for open mobile platforms based on Linux, reported in Qualcomm.
This important stage was reached thanks to close cooperation of Qualcomm with T-Mobile, HTC and many other participants of business alliance Open Handset Alliance (OHA). Qualcomm worked together with HTC on development and creation of this first Android device, optimizing the software and providing integration of the one-chip dual core chipset of MSM7201A.
Announcement of the Snapdragon platform
In November, 2007 the Qualcomm company submitted the Snapdragon platform and two chipsets on this platform. According to the statement of Qualcomm, QSD8250 and QSD8650 become the first chipsets which broke a barrier in 1 GHz with support of multimode broadband communication and multimedia functions. In them possibilities of data transmission unprecedented at that time in mobile networks, including 3G, high performance are combined during the work with multimedia and the low level of energy consumption allowing the device to work from one battery power throughout the day.
The Snapdragon platform provided instant turning on of the device and allowed users to stay always in touch, thereby having opened the next era of computers and wireless mobile devices.
Beginning of cooperation with Microsoft
2006: Flarion Technologies purchase
In 2006 Qualcomm purchased the Flarion Technologies company specializing in area of OFDM communication.
2005: Certification of the first VoIP-phone
2003: Release of fourth generation of chipsets with support of WCDMA
In May, 2003 the Qualcomm company announced release of fourth generation of chipsets with support of WCDMA. In them the HSDPA technology ("high-speed packet data transmission in a downside channel") which is a part of the standard of the next generation of WCDMA (UMTS) and also roaming in the GSM and GPRS systems was implemented.
Moreover, allowed to implement the solution in WCDMA phones the improved multimedia functionality for carrying out video conferences, transfer of a streaming video, audio playback, games, operation of the photo and video camera.
Implementation of gpsOne by mobile operators of the USA
In 2002 two large mobile operators of the USA — Sprint PCS and Verizon Wireless — implemented gpsOne technology from Qualcomm for implementation of the order of the U.S. Government concerning position fix of the mobile phone every time when from it the call to service of rescue 911 arrives.
The agreement with the U.S. Government on development of VoIP-phone
2001: The announcement of the Brew platform for the mobile devices CDMA
In January, 2001 the Qualcomm company provided Brew — an open application development platform for devices of mobile communication of the CDMA standard. The Brew platform was designed for creation of solutions in the industry of wireless communication, "the wireless communication moving to consolidation and the Internet". It allowed software developers to create and monetize multifunction applications for CDMA devices and also gave to users an opportunity to load applications "by air" and to personalize wireless devices according to the requirements.
The announcement of the first CDMA chipset allowing to integrate means of GPS navigation
In August, 2000 the Qualcomm company provided the first multimedia CDMA chipset and the system software. Creation of MSM3300/IFR3300 with function of position fix gpsOne, connection to the Internet, support of a MP3 and Bluetooth allowed producers to begin development of the multimedia applications improved the wireless telephones with a wide choice and energy efficient position fix at the same time executed in small and budget form factors reported in the company.
Business of cell phones is sold to Kyocera
In 2000 production of cell phones was sold to the Japanese company Kyocera. The company focused on development and licensing of technologies of wireless communication and also production of ASIC implementing these technologies.
1999: Production of base stations is sold to Ericsson
In 1999 production of base stations was sold to Ericsson company.
1998: Announcement of the first commercial model of the smartphone of the CDMA standard
In September, 1998 the Qualcomm company provided the pdQ CDMA phone. This device which operation was based on the Palm operating system popular at that time became the first-ever CDMA smartphone, declared in the company.
1993: Qualcomm for the first time in the history implemented mobile Internet access
In July, 1993 the Telecommunication Industry Association of the USA (TIA) recognized CDMA technology the standard of cellular communication, validating a business model of Qualcomm and promoting universal distribution of this digital wireless technology.
1989: Confirmation of operability of CDMA technology
In the spring of 1989 of Qualcomm and PacTel Cellular company agreed to show CDMA technology to fifty companies, the most influential in the industry of wireless technologies.
Qualcomm had only six months on preparation of the demoversion. In day of the presentation, on November 7, 1989, Earvin M. Jacobs rose by the stage in San Diego and began to play specially for time, delivering the opening speech and expecting gesture of approval from development engineers. Having waited for it, he made the first indicative call which put the beginning of an era of wireless connection.
1988: Use of communication of M2M
In August, 1988 Qualcomm started OmniTRACS satellite data transmission system for the transport industry which allowed operators of vehicle fleets to trace the vehicles on routes.
1985: Foundation of the company
In July, 1985 Earvin M. Jacobs, Andrew Viterbi, Harvey Whyte, Franklin Antonio, Andrew Coen, Klein Gilchausen and Adelia Coffman founded Qualcomm company and opened its first office in La-Hoille, the State of California.
- ↑ Qualcomm of FY 2018 4th Quarter Earnings Release
- ↑ Qualcomm stock falls on antitrust ruling — and analysts ‘do not know what will happen next
- ↑ Paid up to Apple of $6 billion to settle with Qualcomm, UBS estimates
- ↑ U.S. judge rules Qualcomm owes Apple nearly of $1 billion rebate payment
- ↑ Demanded Apple of $1 billion incentive payment from Qualcomm to supply iPhone modems
- ↑ Qualcomm Confirms 269 Layoffs As Data Center Ambitions Fade
- ↑ Qualcomm says Apple of $7 billion behind in royalty payments
- ↑ the World's largest producer of chips for smartphones will expel thousands of workers on the street
- ↑ Trump prohibited the most large deal in the history of IT
- ↑ EU fines Qualcomm of $1.2 billion over Apple mobile chip deals
- ↑ Broadcom Ready to Go Hostile for of $105 Billion Qualcomm Deal
- ↑ Taiwan fines Qualcomm of $774 million for antitrust violations
- ↑ You'll get a kick out of this: Qualcomm patents the 'Internet of Shoes'
- ↑ Internet of Shoes
- ↑ Qualcomm hits back at Apple's lawsuit, accuses iPhone maker of false statements
- ↑ Qualcomm sues Apple for hobbling its iPhone chips to make Intel look better
- ↑ of Apple brought the suit against Qualcomm, without having received 1 bln. dollars of the promised ribeyt
- ↑ Qualcomm Fined of $853 Million by South Korean Antitrust Agency
- ↑ of 900 million Android devices under the threat because of four "holes" in processors of Qualcomm
- ↑ of CNews: Employees of Qualcomm earned $19.5 million from the sexual discrimination
- ↑ the Largest producer of mobile chips is suspected of bribery. Investigation is begun
- ↑ Qualcomm to Cut of 15% of Workforce, Weigh Split
- ↑ purchases Ikanos company for the sake of technologies of high-speed wire communication
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