Qualcomm: Inching Towards Leadership In Emerging Markets

Credit: Reuters

• Most of the smartphone and LTE growth is expected to come from emerging markets in coming years.
  
• Qualcomm is well-positioned to compete with its competitors in emerging markets amid collaboration with SMIC.
• Policies of China Mobile are proving to be beneficial for Qualcomm's LTE baseband and IP royalties growth in China.
• Qualcomm is the investor's best-play to materialize on the growth prospects of smartphones and LTE. 
  
   
  

Qualcomm (NASDAQ: QCOM), a technology company that belongs to the industry of communication equipment, has got the most out of the growth of smartphones in the recent past. Qualcomm commercializes CDMA (3G) and OFDMA (4G) based communication technologies that are being widely adopted in the smartphone industry. The company earns a license fee as a result of the implementation of its CDMA/OFDMA IP portfolio by device manufacturers. Qualcomm also designs and markets system on chip, or SoC, solutions for portable devices such as smartphones. In a nut shell, the company has been securing double-benefit from the growth of the smartphone industry; the IP royalty fees and the SoC revenues.

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