Qualcomm was able to beat its own estimates this quarter by shipping more Snapdragon chips than previously expected.
The chipmaker was able to sell 201 million of its high-end mobile processors which enabled it to outperform its estimates by at least 6 million. These sales meant Qualcomm walked away from this quarter with a revenue of $6.04 billion, up 3.6 per cent from the same time last year.
The company experienced a small revenue increase but its net income increased drastically by 22 per cent over last quarter to $1.44 billion. A large portion of this income can be attributed to Qualcomm's more profitable high-end chips that are used in popular phones like Samsung's Galaxy S7 / S7 Edge models, which sold 15 million units this quarter.
However, the company is also earning more from its licensing deals with smartphone manufacturers. Qualcomm has begun to license both its chipsets and technology to Chinese OEMs such as Huawei, Xiaomi and Zte. The companies that licensed products or technology from Qualcomm were able to sell $62.6 billion in devices.
It appears that Qualcomm will likely continue to be successful manufacturing and licensing its chips and technology. Samsung is planning to release its Galaxy Note 7 shortly which uses the company's new Snapdragon 821 CPU and will help to continue the strong sales of its products.
The only way that Qualcomm could find itself in trouble is if Apple decides to switch from its modems to ones designed by Intel. This would certainly affect its bottom line and could allow Intel to carve out a place for itself in the mobile market.
Image source: Flickr / Kārlis Dambrāns