Chinese phone makers, licensing business drive Qualcomm beat

Qualcomm beat analysts' expectations for fourth quarter revenue and earnings on Wednesday, helped by demand from Chinese smartphone makers aimed at emerging markets and a newer licensing model for its wireless technology that has maintained relationships with some major customers.

Shares of the company increased 1.5 percent in expanded trading on Wednesday.

Qualcomm is the world's largest smartphone chip provider, but it has been hit by declining growth in the industry and the loss of major Apple customers.

And while Qualcomm has warned its investors that it does not expect any revenue from Apple's latest iPhone, Qualcomm has signed agreements with Chinese mobile makers, including Xiaomi, Oppo, Vivo and OnePlus. All offer low-priced models in emerging markets like India.

The company has also relieved its license needs, which helped keep large customers like Samsung Electronics with new license agreements.

Exclusive products, Qualcom m achieved 90 cents per share, and analysts estimate 83 cents, according to IBES data from Refinitiv.

Revenue fell to $ 580 billion, but remained above estimates of $ 5.52 billion.

Qualcomm's loss was $ 493 million, or 35 cents per share, in the quarter ended September 30, compared with a surplus of $ 1[ads1]68 million, or 11 cents per share, a year earlier.