China smart phones suppliers are not willing to pay patent to Qualcomm

China is the biggest market for Qualcomm. Many smart phone suppliers in China adopt processor from Qualcomm. And accordingly, Qualcomm has made a lot in China. But now, it also faces some risk in China. That is because that China smart phone suppliers are not willing to pay patent to Qualcomm.

Now, in China, the demand for smart phone is still increasing. Qualcomm is also profited in this market. But from the Qualcomm financial report of last quarter, now, it has some big problem in China.

Now, many smart phone suppliers rely on Qualcomm chipset. But Qualcomm also make profit from the suppliers. As the agreement, Qualcomm can make 8 US dollars for one smart phone in 200 US dollars.

In last quarter, many suppliers refused to pay for the patent, or some pay less. Of course, some big smart phone suppliers, like Huawei, MI, CoolPad, NEC is keeping their promise to pay the patent. That is quite a good news to Qualcomm.

But now, Qualcomm is involved into a autitrust Probe in China. It will last another 12 months more in future.

China market has already taken 20% of total income of Qualcomm, and Qualcomm is also expecting to increase their business by China market.