U.S.-based chipmaker Qualcomm said its revenue rose 4.9 percent to $5.26 billion in Q1 2018. Qualcomm’s net income fell to $363 million from $749 million.

The increase in revenue of Qualcomm suggested that a slowdown in the global smartphone business might be less severe than feared after a string of weak forecasts from suppliers, Reuters reported.

The results announced in Qualcomm’s smartphone chip business contrasted to those from major mobile phone components makers in Asia, including TSMC and SK Hynix, which have warned of slower growth in their smartphone chip divisions.

A Qualcomm statement said qevenue from Qualcomm’s chips division – its largest – grew 6 percent in the three months ended March 25, while revenue from the licensing business fell 44 percent, reflecting the withholding of revenue in a high-profile patent battle with Apple.
Qualcomm forecasts growth of about 5 percent in modern mobile handsets for the remainder of the year, which is lower than anticipated. Qualcomm said handset prices, however, are higher than expected.

Qualcomm is also waiting for Chinese regulators to consider its application to buy chipmaker NXP. Qualcomm CEO said the deal was held up by diplomatic concerns between countries, rather than Qualcomm-specific concerns.

Qualcomm said it expects the loss of business with ZTE to lower its profits by 3 cents per share next quarter.

San Diego-based Qualcomm tries to convince shareholders it can boost earnings by cutting annual costs by $1 billion and resolving the Apple dispute.

Qualcomm forecast current-quarter revenue of between $4.8 billion and $5.6 billion, and adjusted earnings of 65 to 75 cents per share.