Actually fiscal Q2 was not strong , their outlook for the quarter and expectations were low so they beat those by a little but if you go 3 month back you'll remember that these results are not great.
"Total device sales from Qualcomm licencees was $75.8 billion for the quarter, up 14% year-over-year and up 34% quarter-over-quarter. The company is estimating that 384-388 million 3G/4G devices shipped in Q2" That's not true,they accounted for that but that includes quite a big chunk of devices from previous quarters (so before Q4) that were reported now. The outlook also includes some of that.
The outlook details you provide are very poor and the last sentence is rather funny since you don't specify that's on year and it sounds like they might have negative revenue and that's a 26+ billions difference from reality "For FY 2015, Qualcomm is estimating revenue to be between negative 6% and positive 2%."
Noticed one more mistake, the devices reported are 1 quarter behind so in fiscal Q2 they account for devices from fiscal Q1. So 75.8B and 384-388 million are mostly from calendar Q4/fiscal Q1.
So Qualcomm incomes per quarter ($1.05 billion) are exactly the same amount that Intel have been spending quarterly for the last couple years with no sweat subsidizing (bribing?) manufacturers to get them to use their SOCs.
It must be tough to fight against such unbalanced fight.
They payed a 975 million finethis quarter, their usual income is a lot higher. And to be fair, they get like 8 billions per year income from licensing (or trolling if you consider that they get 10 times more than they should).
Trolling if it is patents, but if they license out the modems and GPU they designed, like ARM does - isn't that an entirely ok and cool business model?
ARM gets a tiny fraction of what Qualcomm gets and that's the problem. If you look at the numbers they reported you can do the math. Total reported devices 75.8 billion , estimated device shipments 384-388 million 3G/4G devices.. The 75.8 billions is the total price for those 384-388 million devices. Revenues for QTL (the licensing segment) were 2.414 billions so they got payed on average 6.25$ per device. The device ASP they reported was 196$. That means that their licensing is some 3.2% of the sale price of the ENTIRE device. Now this in an average %, for some devices they get payed more,for some less ,depending on the technology those devices use. As opposed to that ARM's Q1 revenue was 348.2 millions but that's not all from licensing and royalties and it comes from a hell of a lot more chips.Some 3.8billion chips to be precise. So Qualcomm gets a huge cut from the entire device and that's just insane ,while ARM gets a small cut from the price of the actual chip. That's why nobody sane should accept the way Qualcomm does business, it's absurd and if every technology in a phone would have such insane costs ,we just couldn't afford to own smartphones 3G/4G is important enough but so are many other technologies in a phone but no other technology gets this kind of insane licensing model. It's beyond ridiculous what Qualcomm is allowed to do.
samsung reported that they are saving money on the s6.
this report is telling, the market is moving to mid range. they will not be able to sustain the markup or the volume as the market saturates even more. competition is getting stronger, the good old 2012-14 years are over
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jjj - Wednesday, April 22, 2015 - link
Actually fiscal Q2 was not strong , their outlook for the quarter and expectations were low so they beat those by a little but if you go 3 month back you'll remember that these results are not great."Total device sales from Qualcomm licencees was $75.8 billion for the quarter, up 14% year-over-year and up 34% quarter-over-quarter. The company is estimating that 384-388 million 3G/4G devices shipped in Q2"
That's not true,they accounted for that but that includes quite a big chunk of devices from previous quarters (so before Q4) that were reported now. The outlook also includes some of that.
The outlook details you provide are very poor and the last sentence is rather funny since you don't specify that's on year and it sounds like they might have negative revenue and that's a 26+ billions difference from reality "For FY 2015, Qualcomm is estimating revenue to be between negative 6% and positive 2%."
jjj - Wednesday, April 22, 2015 - link
Noticed one more mistake, the devices reported are 1 quarter behind so in fiscal Q2 they account for devices from fiscal Q1. So 75.8B and 384-388 million are mostly from calendar Q4/fiscal Q1.Laststop311 - Thursday, April 23, 2015 - link
Once the effects of the crappy 810 soc are fully represented there should be a big tanking of the numbers.Marc GP - Thursday, April 23, 2015 - link
So Qualcomm incomes per quarter ($1.05 billion) are exactly the same amount that Intel have been spending quarterly for the last couple years with no sweat subsidizing (bribing?) manufacturers to get them to use their SOCs.It must be tough to fight against such unbalanced fight.
jjj - Thursday, April 23, 2015 - link
They payed a 975 million finethis quarter, their usual income is a lot higher.And to be fair, they get like 8 billions per year income from licensing (or trolling if you consider that they get 10 times more than they should).
jospoortvliet - Friday, April 24, 2015 - link
Trolling if it is patents, but if they license out the modems and GPU they designed, like ARM does - isn't that an entirely ok and cool business model?jjj - Friday, April 24, 2015 - link
ARM gets a tiny fraction of what Qualcomm gets and that's the problem.If you look at the numbers they reported you can do the math.
Total reported devices 75.8 billion , estimated device shipments 384-388 million 3G/4G devices.. The 75.8 billions is the total price for those 384-388 million devices.
Revenues for QTL (the licensing segment) were 2.414 billions so they got payed on average 6.25$ per device. The device ASP they reported was 196$. That means that their licensing is some 3.2% of the sale price of the ENTIRE device.
Now this in an average %, for some devices they get payed more,for some less ,depending on the technology those devices use.
As opposed to that ARM's Q1 revenue was 348.2 millions but that's not all from licensing and royalties and it comes from a hell of a lot more chips.Some 3.8billion chips to be precise.
So Qualcomm gets a huge cut from the entire device and that's just insane ,while ARM gets a small cut from the price of the actual chip.
That's why nobody sane should accept the way Qualcomm does business, it's absurd and if every technology in a phone would have such insane costs ,we just couldn't afford to own smartphones
3G/4G is important enough but so are many other technologies in a phone but no other technology gets this kind of insane licensing model.
It's beyond ridiculous what Qualcomm is allowed to do.
djvita - Tuesday, April 28, 2015 - link
samsung reported that they are saving money on the s6.this report is telling, the market is moving to mid range. they will not be able to sustain the markup or the volume as the market saturates even more. competition is getting stronger, the good old 2012-14 years are over
toyotabedzrock - Thursday, April 23, 2015 - link
So they are spending all their money on stock buybacks instead of bettering the product.That is the same thinking that lost them the lead in the market when everyone rushed to 64bit.