The parade of fourth quarter results for tech companies continues. This time it’s Qualcomm. Like almost everyone else, they had a very good fourth quarter. Net income was up 21% to $620 million USD compared to the same quarter last year and revenue was up 25% to $1.74 billion. Also like many other companies, the results were due to strong demand for mobile phones.
Qualcomm makes their money largely from the production of chips for CDMA technology-based phones, which are the dominant chip in America. Qualcomm virtually controls the CDMA market. They also make chips for W-CDMA, the emerging European high-speed wireless technology.
The stock market has been kind to Qualcomm, but with reservations. The stock has gone up 26 percent in the last year. Those are good results, but they are below the industry standard. The semiconductor stock index of the Philadelphia Stock Exchange, which is used as a gauge for market performance, has increased by 32 percent during the year.