The Rising Influence of Rising Affluence

[DewDiligence]

QCOM continues to have problems collecting royalties in China:

http://www.wsj.com/articles/why-qualcomm-is-down-but-not-out-1446751783

The problems for Qualcomm’s licensing business first appeared last year. Chinese handset makers—emboldened by their government’s probe into the company’s royalty rates—have been either underreporting sales of devices or withholding royalty payments, or some combination of both.

Qualcomm officially settled the matter with the Chinese government back in February, but negotiating new deals with handset makers in the country has proven slower than expected. That has clouded the licensing business.

Not a great business model, evidently.