Qualcomm FY 2Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Gartner estimates that approximately 700 million smartphones were sold in calendar 2012, up 44% year over year. Further, they estimate that in 2017 more than 1.7 billion smartphones will be sold, representing an approximate 20% compound annual growth rate versus a 2012 base.”

“Devices shipped by our licensees in the December quarter were estimated at 279 to 283 million units, with an estimated average selling price of $214 to $220.”

“For calendar year 2013 3G/4G device shipments we now estimate between 1.015 million and 1.085 billion devices will be shipped by our licensees, driven by strong global smartphone demand.”

“I think we saw a little bit of a downward trend in ASPs in Q2, although that was in line with what we expected. As we look back historically the last couple of years, we’ve seen actually ASPs kind of trend down in Q2. But then they’ve tended to trend up in Q3 and Q4. ”

“we have had some struggles with local Chinese companies necessarily paying all the royalties they owe on TDS CDMA units.”

“what I think you’re seeing is kind of as the historical mix in our business has been very modem-centric, and it’s had a particular gross margin associated with it.

As we go into getting more and more content on the phone, which is first coming in the form of application processor, and adding in that functionality, what you’re seeing is, I think, a growth in the raw dollars and the gross margin per MSM, but a reduction in the traditional gross margin percentage.”

“I think the general view is that the 28 nanometer node is likely to be the node that exists for a long time, and will probably sort of the mass market node for some time. We kind of felt that we got on that earlier than anybody else.”

“we’re putting our competitors farther and farther behind, and it’s not just the modem, although everybody’s quite focused on that. But it’s also we’re putting them behind on other areas, graphics, microprocessor design. And that is evidenced by the number of design wins we’ve had, 850 designs launched or announced. 475 more currently in design”