Boston, MA 08/13/2014 (wallstreetpr) – QUALCOMM, Inc. (NASDAQ:QCOM), a leading provider of smartphone chips with vast business interest in China, saw its shares trading down 0.79% to $74.14 in the regular session on Tuesday, but recouped 0.69% in the after-hour session. The Tuesday loss ended up evaporating some of the gains the stock has accumulated over the past one year, which now stands at 12%.
Shares of QUALCOMM, Inc. (NASDAQ:QCOM) have been under pressure since the company announced “significant challenges” in China and even narrowed its near-term financial outlook. In the latest development, as Bloomberg stated in an article, China seems remain a hot issue for the company with things taking a new twist.
Researcher fired
It is emerging that a researcher who provided consulting services to Qualcomm in the ongoing antitrust probe against the company was fired from his position on a state council committee. Media reports citing unidentified sources said the researcher, Zhang Xinzhu, violated disciplinary measures and acted in a manner that appeared to support the position of QUALCOMM, Inc. (NASDAQ:QCOM) in the investigation that it didn’t engage in monopolistic activities. Reports also go on to way Xinzhu received huge amounts of money to act as he did.
However, neither QUALCOMM, Inc. (NASDAQ:QCOM) nor Xinzhu has been able to come clean on the reports so far.
Chinese authorities are looking into the links between QUALCOMM, Inc. (NASDAQ:QCOM)’s license and chip making business in the country, with hopes of unearthing a foul play.
Qualcomm is being investigated in China over violation of the country’s antitrust laws, especially in connection with technology licensing. The company generates its revenue in China from smartphone chips sales and also licensing of technology. However, the company reported recently that it was facing challenges in collecting licensing revenue, a development that saw the company forecast narrowly on its net income.
Nonetheless, QUALCOMM, Inc. (NASDAQ:QCOM) reported 42% increase in its 3Q revenue and also went ahead to increase earnings outlook for the full-year, mainly because of the big demand for smartphones that use its chips.
