Mala Gaonkar Pegs Qualcomm To Ride The Smartphone Wave

Ira Sohn London: Mala Gaonkar, Managing Director of Lone Pine Capital LLC

Mala Gaonkar Pegs Qualcomm To Ride The Smartphone Wave


Price Target:



Mala Gaonkar on Qualcomm

2/3 of earnings are 3G 4G wireless data voice. 1/3 earnings are chips. Smart phone market doubling in the near term. High end market has a high replacement cycle. Long contract terms and structures. Both standardized and bespoke manufacturer. 2 years on average smartphone replacement. Plenty of growth for mobile internet penetration. Investment in 4G networks leading more demand for company chips and data services. Blended average royalty rates have been stable during the past several years. High viability in revenue stream, strong patent portfolio and competitors are investing less. Has many more patents and developed technology than its peers. Growth of the machine-to-machine internet communication business will drive growth in the data transmission sector. QUALCOMM, Inc. (NASDAQ:QCOM) has 97% of the LTE business. Royalties are 70% of earnings



2.5 billion royalty bearing units

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Rupert Hargreaves
Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. Prior to his investing and writing career, Rupert began his career as a proprietary currency trader. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk and co-runs HiddenValueStocks with Jacob Wolinsky Email -