World’s biggest mobile semiconductor company, Qualcomm, has agreed the pay the Chinese government the fine of $975 million, at the end of a 14-month investigation which was carried out on the company following allegations of foul play in price fixing of products in order to outsmart competitors.
The company will also have to lower royalty rates for clients in the region meaning that smartphones from Xiaomi, Huawei, Lenovo, etc., could get even less costlier in the near future. Qualcomm CEO Steve Mollenkopf thanked goodness that the ordeal is “something we’re happy is over.” The company slashed revenue on its revenue for the year having predicted the Chinese fine.
“It removes a significant source of uncertainly from our business and really positions our licensing group to really participate in the full growth of the wireless market in China,” Mollenkopf explained. The agreement saw shares of the United States chip maker rising by 1.6 percent to $68.18 late Teesday.