Qualcomm Boosts China Efforts Through Xiaomi Licensing Deal
During the same conference call, CEO Steve Mollenkopf said that "QTL remains a source of significant strength for Qualcomm and we are confident in our long-term QTL business outlook based on continued growth of 3G/4G across mobile devices and new product categories, as well as our continued innovation in new mobile technologies." Over the year, Qualcomm also had made other moves to grow its presence in China. In December 2014, the company announced it was investing $40 million in Chinese companies, a move that come months after the company launched a $150 million fund for the Chinese market. In June, the company said it is partnering with Huawei, Chinese foundry Semiconductor Manufacturing International Corp. and others in creating the SMIC Advanced Technology Research and Development Corp., a joint venture that will push R&D toward next-generation chips for both the Chinese market and abroad. The Chinese market is getting attention from a number of chip vendors, including Intel and companies in the OpenPower effort. It's been a tough year for Qualcomm beyond the challenges in China. Samsung late last year said it wouldn't use Qualcomm's 64-bit ARM-based Snapdragon 810 in its Galaxy X6 smartphone, reportedly over heating problems. However, Samsung said it would use the chip maker's new Snapdragon 820 in its upcoming Galaxy X7 device.
At the same time, the company has been under pressure from activist investor Jana Partners to restructure the company, return more money to shareholders and possibly split in two, separating its chip-making business from its licensing unit. In July, the company announced a plan to slash $1.4 billion in annual costs by cutting 15 percent of its workforce.