Qualcomm and Samsung inks Strategic Agreement

Qualcomm and Samsung inks Strategic Agreement

Qualcomm and Samsung inks Strategic Agreement. Qualcomm and Samsung announced it has signed a strategic agreement covering a wide range of technologies and mobile devices which will see the smartphone giant withdraw from a Korea Fair Trade Commission (KTFC) probe into the chip giant’s licensing practices. Qualcomm and Samsung inks Strategic Agreement.

Qualcomm said in a statement.

The deal “expands the companies’ long-standing relationship as technology and business partners this year and beyond, through the transition to 5G”.

Qualcomm and Samsung inks Strategic Agreement

Cristiano Amon, president of Qualcomm, said the announcement :

Underscores the importance of our longstanding strategic relationship with Samsung in driving core mobile technology into many different segments.

Samsung is a long-standing customer of Qualcomm, with the relationship extending Qualcomm-powered versions of Samsung’s flagship smartphones. Qualcomm said the patent deal is “consistent with Qualcomm’s global handset-level licensing practices”. This is important because this model – where royalties are based on whole device price rather than on a silicon level – is a key issue in an ongoing dispute between Qualcomm and Apple.

Alex Rogers, EVP and president, Qualcomm Technology Licensing, said :

We believe this amended agreement provides the foundation for a long-term stable relationship with Samsung following the KFTC investigation.

Qualcomm results,

The announcement came as Qualcomm reported a loss for the quarter to 24 December 2017 of $6 billion, compared with a profit of $0.7 billion in the comparable period of 2016: revenue of $6.1 billion was up 1 per cent.

During the recent quarter, the company recorded a $6 billion charge related to changes in the US tax system, plus a $1.2 billion charge for a fine imposed by the European Commission.

Qualcomm’s licensing revenue of $1.9 billion, down from $1.4 billion, continued to be impacted by the Apple dispute and its device manufacturer partners, as well as “the previously disclosed dispute with another licensee”. Some $740 million in royalties from these companies were recorded in the prior-year figures.

For its semiconductor business, revenue of $4.7 billion was up 13 per cent. It noted the performance was above expectations, “driven primarily by the higher unit volume on a build ahead for a customer’s flagship launch” most likely Samsung’s Galaxy S9.

Also Read : Qualcomm and Alibaba to Help Drive the LTE IoT in China

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