China's Antitrust Sentence and Its Impact on Qualcomm and the Chinese Industry

China's Antitrust Sentence and Its Impact on Qualcomm and the Chinese Industry

In 2014, the Mobile China Alliance reported to the Chinese NDRC (National Development and Reform Commission), alleging Qualcomm of harming China's mobile phone industry. After 14 months of anti-trust investigation, Qualcomm is found guilty of violating Chinese antitrust laws and sentenced to a fine of US$975 million. On top of that, Qualcomm is prohibited to sell bundled patents to Chinese companies. Master in the core technology of communications, Qualcomm has its main source of profit from royalties of patent licensing. This report examines the impact of China's anti-trust sentence on Qualcomm, the overall chip industry and China's mobile phone industry.

List of Companies

CCIA HP Huawei Intel Marvell MediaTek Microsoft NDRC Qualcomm Spreadtrum ZT

  • Background
  • Impacts on Qualcomm
    • Table Qulacomm's Revenue Share by Regional Market, 2010 – 2014
    • Financial Aspect
    • Sales Aspect
  • Qualcomm's Possible Strategies
    • First Scenario: Sustain Profits with High Pricing Strategy
    • Second Scenario: Trade Price for Market Share
  • Subsequent Impacts on the Industry
    • Chinese Companies' Competitiveness to be Enhanced with Reduced Licensing Costs
    • Importance of Patent Deployment Increases to Benefit the Industry in the Long Run
    • International Brands' Cooperation with Chinese Companies Growing in Importance
  • Conclusion
    • Qualcomm Pricing Strategy Reshapes IC Makers' Market Landscape
    • Chinese Mobile Phone Brands Become More Competitive
    • The Model of International Businesses' Entry into the Chinese Market is Changing
  • Appendix

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