Qualcomm's Gamble Pays Off: A Shelby Company Report

By Order of the CFO

Right let's talk numbers. Qualcomm's Q2 earnings are in and they've managed to line their pockets better than expected – $2.85 per share adjusted. Revenue's up too $10.84 billion. Not bad for a company that's basically selling sand. But remember even the devil was once an angel. We need to see the bigger picture. Are they just getting lucky or is there real steel in their strategy?

More Than Just Phones

Amon that CEO fella is trying to move away from just selling chips for phones. Smart move. He's pushing into cars and these new fangled 'Internet of Things' gadgets. Their automotive business is up 59% pulling in close to a billion dollars. IoT's up 27%. It's like diversifying your bets at the races – don't put all your money on one horse. A good gambler always has a backup plan just like I always do.

The Apple Dilemma

Here's the rub. Apple's planning on cutting ties with Qualcomm in the coming years. That's a big loss even for a company this size. It's like losing a war. But Amon seems to be prepared pushing the other lines of business trying to build a new empire. Good strategy is about choice. This is no exception!

Patents and Licensing: The Real Gold Mine

Don't forget about QTL their licensing division. That's where the real money is. They just sit back and collect fees on their patents. It's like owning the land the other fellas are building on. Revenue was flat this quarter but it's still a gold mine. Afterall Licensing is about power.

Navigating Treacherous Waters

Amon's talking about 'macroeconomic and trade environment'. He's dancing around the fact that tariffs and export controls are making things difficult. Running a company is like running a gang – you've got to navigate the law the competition and the bloody weather. You listen to me very carefully.

Capital Return: A Sign of Strength?

They're spending a lot of money buying back shares and paying dividends. $2.7 billion. That's either a sign of confidence or a desperate attempt to keep the shareholders happy. Either way it's a bloody expensive game. Sometimes death is a kindness.