Qualcomm CEO Paul Jacobs looks at 4G in China for better growth

Paul E Jacobs, chairman and CEO of Qualcomm said that the chip major is expected to clock double-digit compound annual growth rates for both revenues and earnings per share over the next five years. He is betting on China’s mobile market for growth.

His confidence in the telecom sector reflects the rapid growth in both the 3G and LTE / 4G roll outs across the world.

ABI Research earlier said 9 telecom service providers in Asia Pacific are looking for upgrading their LTE networks to LTE-Advanced networks. Apart from Asia Pacific, 10 telecoms from Western Europe and 5 from North America are readying for LTE-Advanced.

Paul E Jacobs, chairman and CEO of Qualcomm

Qualcomm CEO, announcing the fiscal fourth quarter revenue, said the chip company is expecting continued strong growth of 3G and 3G/4G multimode devices around the world, particularly in China with the anticipated launch of LTE.

China Mobile, the world’s largest telecom operator, is gearing up to launch 4G next year. Though Reliance Jio Infocomm, the telecom arm of Reliance Industries (RIL) with pan-India 4G license, and Airtel with limited LTE presence are trying to become aggressive in India, Qualcomm’s Jacobs did not mention about India as a key market for its growth plans.

ABI Research is also not considering India as the key market for 4G. Asia-Pacific will be the region with the most TD-LTE networks. Of global TD-LTE concluded contracts awarded to vendors so far, 47 percent come from Asia-Pacific and the second largest portion of 18 percent is contributed by the Middle East.

Meanwhile, Qualcomm said its fourth quarter fiscal 2013 revenue rose 33 percent to $6.48 billion on year-on-year basis.

Net income of the semiconductor vendor grew 18 percent to $1.50 billion. But net income dipped 5 percent sequentially.

For the fiscal 2013, Qualcomm revenues increased 30 percent to $24.87 billion and net income rose 12 percent to $6.85 billion.

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