Chip maker Qualcomm Inc. has registered a hefty revenue margin of $6 billion, about 10% increase from the previous quarter in Q3 2016, exceeding all expectations by the analysts. The net income too have shown an impressive rise of 22% year-over-year.
Qualcomm’s major income has come from its patent license business, especially in the Chinese region as well as from the sale of high-end Snapdragon chipsets. The company saw $2.04 billion in sales from its technology licensing business. Also, the sale of chipset has majorly influenced by its license renewal with Samsung as the device manufacturer recently launched Galaxy S7/S7 Edge models that use Qualcomm Snapdragon 820 chips.
According to the company’s CEO Steve Mollenkopf, the growth momentum will continue in the upcoming quarter. President Derek Aberle added that the company is in the negotiation process with a lot of Original Equipment Manufacturers in China.
Also, its 5G efforts will continue to progress. “Recent spectrum regulatory decisions and movement in the U.S. and Europe, combined with progress on the spectrum regulatory front in China, Japan and Korea, are good indications that the world is preparing for 5G,” Mollenkopf said.
Qualcomm’s EPS stood at $0.97 per share, up from $0.78 in the previous quarter. Non-GAAP revenue surged 3.6% to $6.04 billion or $1.16 cents per share.