In the lawsuit it launched against Qualcomm in January, Apple claimed the company withheld rebate payments because Apple cooperated with a South Korean regulatory probe of Qualcomm.
But Qualcomm's outlook did come with some question marks attached, the biggest of which involve its high-profile legal battle with.
Like Apple, the licensee is paying some, but not all of the royalties Qualcomm thinks it owes.
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For now, Qualcomm still expects to see a low-single digit ASP decline this fiscal year.NXP, it should be noted, is the world's largest automotive chipmaker and got the lion's share of the.5 billion it recorded last year from products other than phones.Moreover, there were a handful of encouraging disclosures about business conditions: The estimated average selling price (ASP) for the 3G/4G devices that Qualcomm collected royalties on fell by just 1 annually, to a range of 204 to 210.That means going forward, Apple can't use Qualcomm's withheld payments as an excuse to cut imax discount code navy pier its royalty payments.Qualcomm reported its mid-range Snapdragon 600 and 400 processor lines respectively have 200-plus and 190-plus devices in design, thanks partly to strong adoption among Chinese OEMs.But for all the positive datapoints, Qualcomm will likely have no choice but to issue an earnings warning if Apple decides to play hardball and instructs its contract manufacturers to stop making royalty payments altogether.
Automotive, networking and IoT chip sales were said to be strong last quarter.
The fact that they went into earnings trading for just 11 times a consensus fiscal 2018 (ends in September 2018) EPS estimate.75 - an estimate that doesn't account for Qualcomm's pending and highly accretive acquisition.
And it's still possible - as some analysts have speculated - that Apple will choose to fully rely on Intel's new XMM 7560 modem for this year's iPhone launches.
RF360 Holdings JV, which makes RF filter components.Of course, this doesn't guarantee that Apple still won't underpay, and for this reason the midpoints of Qualcomm's revenue and EPS guidance assume some underpayment.That gave Qualcomm a healthy margin of error that its latest earnings report seems to fall well within.Taking in all the positive and negative near-term events, Qualcomm is arguably performing a little better than feared.We might not know for sure until Qualcomm provides its September quarter outlook in its next earnings report.Meanwhile, Qualcomm notes a late-2016 Chinese smartphone inventory buildup - also observed.All the same, shares went into earnings down 21 from where it traded before the FTC and Apple filed suit.Though Qualcomm said the contract manufacturers responsible for paying iPhone royalties to Qualcomm paid less than they owed (on account of being paid less by Apple) for December quarter iPhone sales, it added the payments were only equal to the 1 billion in rebates that.Qualcomm also mentioned that its fiscal Q2 results and Q3 guidance would be higher if not for a dispute with another licensee that had a 150 million impact on royalty revenue.