In his first TV interview as CEO of Qualcomm Inc (QCOM), Steve Mollenkopf tells CNBC that the chip business is rocking thanks to a burgeoning market in China.
“We have very strong demand in the chip business and if you look at our quarter that we delivered, it was actually a very strong quarter from the earnings per share perspective,” Mollenkopf told CNBC’s Melissa Lee on Thursday. “It was actually [a] record even from the licensing perspective and we had a strong outlook from the chip side of the business, which is really more a leading indicator of what will happen on the licensing side.”
Mollenkopf described the strength in China as “broad” and spread across multiple categories and OEMs. And he thinks that as competition for higher performance ratios in China’s smartphone space continues to intensify, demand from China will only continue to grow.
“What we think is going to happen in China is as China adopts LTE, and that becomes a very, very large market for LTE – it will also be an area where strength in the Chinese market will enable those same OEMs to export,” Mollenkopf said.
Qualcomm shares, currently trading at $76.55, have performed well over the last 12 months, rising more than 21 percent. At market close on Thursday, April 25, the stock was up almost 5% percent year-to-date.