Qualcomm (NASDAQ: QCOM)’s president is hoping that the entry-level smartphone market in China will help drive growth.
Qualcomm may be seeking new areas to sell its chips as it continues to fight several legal battles with Apple (NASDAQ: AAPL) which has stopped paying Qualcomm royalties. Apple believes Qualcomm is overcharging in chip royalties, while Qualcomm believes Apple's iPhone wouldn't be possible without its technology.
China may help hedge any issues on the horizon, should Apple and Qualcomm's battles turn even more sour.
"China is a very large market for smartphones," Derek Aberle was quoted as saying by the Nikkei news agency. "It's actually difficult for any company including Qualcomm to be able to work with and support all of the customers in a market that is that large."
Qualcomm will face local competition. Huawei, for example, builds its own Kirin processors, while MediaTek is a popular brand name in entry-level low-cost smartphones.
Earlier this week, the San Diego-based corporation announced a strategic investment in Amionx, Amionx, a leader in safe battery technology. As part of its investment, Aberle will join the board of directors of Amionx.
Amionx has pioneered and patented a transformative technology called Safe Core that acts like a circuit-breaker to prevent lithium-ion batteries from being the source of a fire or explosion.
Qualcomm shares perked 57 cents early Friday afternoon, or by 1%, to $57.04, within a 52-week trading range of $50.84 to $71.62.
