In the early morning of August 1, Qualcomm announced the third quarter earnings report for 2019. The financial report shows that Qualcomm's total revenue in the third quarter was 9.6 billion US dollars, an increase of 73% compared with the same period last year. After removing one-time gains, total revenue was $4.9 billion, down 13% from the same period last year. Net profit was $2.1 billion, an increase of 79% compared to $1.2 billion in the same period last year
It is worth noting that nearly 48% ($4.5 billion to $4.7 billion) of Qualcomm's $9.6 billion in revenue came from patent revenues earned after Apple reached a settlement. Excluding this portion of revenue, Qualcomm's sales were $4.89 billion, lower than analysts' estimate of $5.09 billion.
Previously, Qualcomm and Apple had initiated more than 50 lawsuits against each other in multiple countries for licensing fees. After the settlement was reached, Apple paid a payment to Qualcomm under the settlement agreement. Affected by the settlement news, on April 17, Qualcomm shares closed up 23%. Qualcomm expects to receive $4.5 billion to $4.7 billion in patent fees from the settlement with Apple.
Qualcomm CEO Steve Mollenkopf said it achieved solid quarterly business growth as demand for 4G equipment slowed and the market was ready to transition to 5G worldwide. As the world's largest supplier of smartphone chips, Qualcomm still faces an environment of continued weakness in the market before the 5G market.