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China: Qualcomm strikes licensing deal with Xiaomi

 |  December 3, 2015

Qualcomm and Xiaomi finally reached an agreement over license deals.

According to the Wall Street Journal, Qualcomm Inc. announced that it reached a patent-licensing deal with Xiaomi Corp., one of the largest smartphone makers in China, signaling the progress in easing the American chip maker’s struggles in the country.

Qualcomm is noted to get more than half of its profits from licensing patents, and customers in Asia, particularly China, accounted for more than half of total revenue during the fiscal year that ended in September.

On Nov. 4, the company cited delays in convincing Chinese handset makers to sign licensing agreements in projecting lower profit than expected in its first fiscal quarter, resulting into Qualcomm’s shares to fall by 15 percent in the next trading session.

Full content: The Wall Street Journal

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