Qualcomm Falls as Forecasts Show Licensing Struggle in China
- Chipmaker experiencing delays in royalty signups, CEO says
- Chipset demand came in stronger than company had predicted
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Qualcomm Inc. shares plummeted the most in 15 years after the company forecast quarterly sales and profit that fell short of some analysts’ estimates, underscoring the chipmaker’s struggle to collect technology-licensing fees for smartphones sold in China.
The company said it’s facing tough negotiating tactics at phone makers in the world’s most-populous nation, as some companies there withhold payments and stop reporting shipments in an attempt to secure better terms. That led to the weaker outlook for the company’s licensing business, its most profitable.