Leading wireless chipset manufacturer Qualcomm Inc.QCOM recently announcement a patent license agreement entailing 3G and 4G networks with Gionee Communication Equipment Co. Ltd. As per the deal, Qualcomm has granted Gionee a patent license to develop, manufacture and sell 3G WCDMA (Wideband Code Division Multiple Access) and CDMA2000 (Code-Division Multiple Access) and 4G LTE (including 3-mode: GSM, TD-SCDMA and LTE-TDD) devices in China. The royalties payable by Gionee are in line with the terms of the rectification plan submitted by Qualcomm to China's National Development and Reform Commission (NDRC).
Gionee is a smartphone manufacturer based in Shenzhen, Guangdong. Founded in 2002, it is one of China's largest mobile phone manufacturers.
Qualcomm's improved and upgraded technologies are allowing companies to build new and updated products and services across the wireless ecosystem and thus better serve customers as per their needs.
In Nov 2016, Qualcomm's subsidiary, Qualcomm Technologies, Inc. (QTI) announced the launch of the 5G New Radio (NR) spectrum sharing prototype system and trial platform. This was followed by the launch of another updated Snapdragon chipset. Qualcomm Technologies and Samsung Electronics Co., Ltd. entered into a strategic alliance to manufacture a premium Snapdragon processor, Qualcomm Snapdragon 835, using the latter's 10-nanometer (nm) FinFET process technology.
In Oct 2016, Qualcomm Technologies announced the launch of the world's first 5G modem Snapdragon X50 and gigabit modem Snapdragon X16 LTE.
In Sep 2016, Qualcomm, along with other mobile telecommunication companies - Ericsson ERIC , Huawei Technologies Co. Ltd, Intel Corporation INTC and Nokia Corporation NOK - announced a 5G Automotive partnership with German car manufacturers Audi, BMW and Daimler. The main motive behind this alliance is to deal with the society's connected mobility and road safety needs by upgrading the infrastructure with the help of LTE and 5G advancements.
Qualcomm is leaving no stone unturned to strengthen its footprint in communications and technology, especially when 5G is making inroads into the industry. Hence, we believe that such efforts have helped it outperform the Zacks categorized Wireless Equipment industry's performance on a year-to-date basis. The stock gained 33.76%, far better than the industry's decline of 6.17%.
However, aggressive competition in the mobile phone chipset market, stringent regulatory norms and anti-competitive charges are some of the major headwinds for the company. These adverse factors might be the reasons for Qualcomm's present Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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