Blog Post

Why Qualcomm Has Its Wallet Out

The Elata and Flarion acquisitions reflect the outfit’s need to keep abreast of tech’s latest trends. Expect more of the same, says this BW story…even though things are pretty for the company for now, in the fast-paced life of wireless technology, CDMA can’t remain on the cutting edge forever.
So if it wants to maintain its 42% operating margins and exorbitant royalty fees in the long term, Qualcomm — whose licensing revenues contribute 34% of sales — must expand its patents portfolio to encompass non-CDMA technologies.
Qualcomm also needs to diversify its revenues into such markets as software for cell phones, say analysts. Enter Elata: The startup’s code should strengthen Qualcomm’s Brew software, allowing carriers to sell and deliver content to their customers’ mobile phones.