Qualcomm, a notable chip maker

The Barron’s Magazine published a list of 500 America’s Top Companies ranked by the magazine on May 7, 2012. The San Diego based Qualcomm received four out of possible four points ranking the company number 4th on the list. It received a ranking of an “A” in all three major criteria used by Barron’s to rate 500 major companies beating other tech giants such as Intel, Texas Instruments, Microsoft and others.

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Every 3G and 4G smartphone has a chip made by Qualcomm or a producer who uses technology licensed by Qualcomm. In 2011, Qualcomm sold over 483 million chips thanks to the explosive growth in the smartphone industry. Worldwide sale of smartphones are expected to grow by 35 percent this year.

Qualcomm earned over $15 billion from the sale of chips. More than two thirds of Qualcomm revenue came from its own chips and the remainder from royalty due to the licensing of its chip technology.

Qualcomm outsource its production of chips. Lately they are having trouble meeting the demand. However, in order to meet the demand created by the rapid expansion of the technology and demand from tablets and other home-electronics devises, Qualcomm is making calculated acquisitions of other companies.

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