More Smart Phones Mean More Profit: Qualcomm CEO
"Get Smart" could be the motto of Qualcomm CEO and chairman Paul Jacobs, who told CNBC Thursday that the growing popularity of smart phones is one reason his company is beating expectations.
“People are into these smart phones now and that’s caused our chip business to do better and also our licensing business to do better,” said Jacobs, who also has 35 patents on his inventions.
“This year is the crossing point where more people get access to broadband over mobile than over fixed, and we’re seeing that grow into the future."
Qualcomm manufactures chipsets, which are integral to smart phones and licenses technology and private communications services. It has more than 185 licensees.
The technology company reported record shipments and earnings per share for both the quarters and the fiscal year.
Jacobs said on the company’s revenue side, the chipset generates 60 versus 30 percent for licensing and on the profit side, the numbers are reversed.
“The operating margins in the licensing business are above 80 percent,” he added, [and the] operating margins in this quarter for chipsets were 28 percent.”