QCT’s operating margin fell from 16.9% in fiscal 1Q16 to 5% in fiscal 2Q16. The margin was on the higher end of the low- to mid-single-digit guidance as the ASP (average selling price) of 3G and 4G handsets equipped with Qualcomm chipsets rose by 6% YoY to $205–$211. The price rose due to a favorable product mix and higher content per device.
The Margins on cell phone chips are terrible. QCT made 2.5 bil on 17bil in revenue.
Would it really make sense to invest in Cellphone business when every dollar you put in gets you less ROI compared to what you have now. From a finance perspective it would make more sense to return it to the shareholders and let them invest in QCOM if they want to.
http://marketrealist.com/2016/04/qualcomms-chipset-margin-hi...
QCT’s operating margin fell from 16.9% in fiscal 1Q16 to 5% in fiscal 2Q16. The margin was on the higher end of the low- to mid-single-digit guidance as the ASP (average selling price) of 3G and 4G handsets equipped with Qualcomm chipsets rose by 6% YoY to $205–$211. The price rose due to a favorable product mix and higher content per device.
The Margins on cell phone chips are terrible. QCT made 2.5 bil on 17bil in revenue.
http://investor.qualcomm.com/secfiling.cfm?filingID=1234452-...
Would it really make sense to invest in Cellphone business when every dollar you put in gets you less ROI compared to what you have now. From a finance perspective it would make more sense to return it to the shareholders and let them invest in QCOM if they want to.