Qualcomm Inc, the second-largest maker of chips for mobile phones, said Nokia Oyj's plans to reduce investments in code-division multiple access technology won't "impede" the growth of CDMA.
Nokia's decision also won't "adversely" affect Qualcomm, the San Diego-based company said on Friday in a statement. Espoo, Finland-based Nokia, the world's biggest handset maker, has had "very little success" in CDMA technology, Qualcomm said.
Nokia on Thursday ended a planned venture with Sanyo Electric Co to develop CDMA-based cell phones, saying the technology is losing momentum in newer markets. Qualcomm, which dominates in CDMA chips, collects royalties from companies that use its technology. Nokia's plans won't affect Qualcomm's sales or profit forecasts this year, chief financial officer William Keitel said.
"There were some harsh statements and we're trying to clear the air on our side," Keitel said in an interview. "Various people were concluding that this was going to impact the growth of CDMA 2000. Nokia had a very small role in CDMA 2000."
CDMA technology accounted for 18 percent of the global handset market in the first quarter, down from a peak of 21 percent in 2004, according to researcher Strategy Analytics Ltd.
"Investors are concerned that Nokia's decision to pull out of manufacturing CDMA phones represents a blow to Qualcomm," wrote Caris & Co analyst Susan Kalla in a note to investors.
This could give Nokia "the upper hand in its contract dispute with Qualcomm, she said.
Australia's Telstra Corp is switching to GSM and carriers like Vivo, Brazil's largest, and Reliance Communications Ltd, India's largest CDMA carrier, are discussing increased investments in GSM.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to