Qualcomm Expects China to Account for Bigger Part of 2007 Sales
By Janet Ong
July 10 (Bloomberg) -- Qualcomm Inc., the world's second- biggest maker of chips that run mobile phones, said it expects China to account for a bigger part of total sales this fiscal year on increased demand from equipment makers.
``We do expect continued growth of our business in China, driven by demand from Chinese companies like Huawei and ZTE,'' Frank Meng, president of Qualcomm Greater China, said in an interview today in Beijing. He declined to give estimates.
China accounted for 17 percent of Qualcomm's sales of $7.53 billion for the year ended Sept. 24, 2006, Meng said. In April, the company raised its forecast for sales in the current fiscal year to between $8.4 billion and $8.7 billion, from a previous forecast of between $8.1 billion and $8.6 billion.
``With the anticipated 3G license, China is important to Qualcomm, the CDMA industry and the telecom companies,'' Meng said. China, the world's largest wireless market, is one of the fastest-growing markets for San Diego-based Qualcomm, he said.
ZTE Corp. and Huawei Technologies Co., two of China's largest makers of phone gear, are increasing spending as they win more orders from abroad. ZTE in June said it plans to increase orders from Qualcomm by 66 percent to $500 million in the two years ending December 2007.
China has picked three technologies for its 3G mobile standards. The government in May said it will adopt wideband code division multiple access, or WCDMA, and CDMA2000 technologies in addition to the domestically developed time division synchronous code division multiple access, or TD-SCDMA, standard.
To contact the reporter on this story: Janet Ong in Beijing at jong3@bloomberg.net
Last Updated: July 10, 2007 06:31 EDT
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