With antitrust deal done, Qualcomm still faces China challenges

[Wireless News]

http://l3.yimg.com/bt/api/res/1.2/Tmw0JRd5zrbEezGkliHzzA--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://media.zenfs.com/en_us/News/Reuters/2015-02-10T102643Z_1006950002_LYNXMPEB190DA_RTROPTP_2_CBUS INESS-US-CHINA-QUALCOMM-CHALLENGES.JPG (http://news.yahoo.com/antitrust-deal-done-qualcomm-still-faces-china-challenges-102237453--finance.html)By Noel Randewich and Gerry Shih SAN FRANCISCO/BEIJING (Reuters) - Even after agreeing to pay a record near-$1 billion fine in China for antitrust violations, U.S. chipmaker Qualcomm Inc faces big challenges in its most important market. As low-cost, low-margin Chinese smartphone manufacturers such as Xiaomi Inc and Huawei Technologies push into other developing markets, they are driving down average handset prices - bad news for San Diego-based Qualcomm, which collects royalties based on the handset's value. Qualcomm could see its margins slip, eroding its profits, as firms like Xiaomi and Huawei push their budget devices into markets such as India and Latin America. While sales of high-end devices like Apple's iPhone remain robust - and generate hefty profits for Qualcomm - the average selling prices for smartphones in developing countries will fall to $102 by 2018 from $135 last year, predicts IDC.



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