Qualcomm Inc (NASDAQ:QCOM) to Unveil 5G Prototype Platform
Mobile chip manufacturer Qualcomm Inc (NASDAQ:QCOM) dropped a total of 7.9% within the last couple of market sessions. The company’s chart position was likely impacted by the UK’s Brexit vote late last week, which sent tremors across the market and pushed many tickers down. Yesterday QCOM stabilized a bit, closing just 1% down at $51.14 per share.
Qualcomm will be showing its 5G New Radio system prototype at this week’s Mobile World Congress in Shanghai. The company is keeping its sights on frequencies below 6 GHz for its 5G platform, as it believes there are “a very large number of use cases” that stretch beyond mobile broadband. Fierce Wireless points out that comparing the 3.5 GHz and 28 GHz bands, 28 GHz needs a lot more nodes and base stations to reach the same amount of coverage 3.5 GHz can provide with fewer nodes.
Speaking of Shanghais’ Mobile World Congress, QCOM recently accused Chinese mobile phone manufacturer Meizu of using Qualcomm intellectual property in their products. The licensing situation in China is not exactly optimal, as QCOM had to pay a hefty $975 million “fine” back in 2015, as settlement with Chinese anti-trust authorities who took issue with how the company was wielding its patent portfolio. However, this led to Qualcomm signing patent-licensing agreements with multiple Chinese manufacturers including Xiaomi and Huawei.
According to Android Authority, Meizu responded with a statement that they are “welcoming” QCOM to “proceed negotiations” at any time.
Qualcomm announced strong quarterly performance in April. The company beat earnings estimates by a respectable margin, logging EPS of $1.04. Revenues were at $5.5 billion, again ahead of estimates. Third quarter guidance announced included EPS of $0.99 and revenues of $5.8 billion. The market was not quick to react to the release of the report, but the stock had already climbed a few dollars ahead of the filing.