Shares of Qualcomm jumped 7 percent on Wall Street Wednesday after the San Diego-based wireless giant announced a licensing agreement with a major Chinese smartphone manufacturer.
The royalty deal gives Xiaomi, a leading Chinese smartphone and Internet company, a license to develop, manufacture and sell 3G and 4G devices using Qualcomm’s technology.
Qualcomm shares topped $53 in early trading on NASDAQ, well above their 52-week low of $47.52.
“Xiaomi prides itself on embracing and leading smartphone innovation through its popular line of Mi devices,” said Lei Jun, CEO of Xiaomi. “A license from Qualcomm will play an important role in helping us bring the newest and most innovative products to our growing customer base.”
“Qualcomm is committed to the success of its partners in China as they continue to grow their businesses and we are pleased to reach this new agreement with Xiaomi,” said Derek Aberle, president of Qualcomm. “We work closely with our partners, such as Xiaomi, to push the boundaries of what’s possible and drive the advancement of the mobile industry.”
Earlier this year Qualcomm paid a $975 million fine to settle an investigation by China over product licensing. The company said the agreement was consistent with