Qualcomm (QCOM) played with fire one too many times. Whether it was disputes over IP with its largest customer Nokia (NOK) or fights with rival Texas Instruments (TXN).
Today, its ongoing battle with Broadcom (BRCM) took an ugly turn. The U.S. International Trade Commission put a ban on imports of all 3G phones using Qualcomm chips. Broadcom had asked for the ruling. All of the major cell service providers in the US including AT&T (T), Verizon Wireless, and Sprint (S) should feel some impact soon. Qualcomm current model phones being shipped into the country before June 7 will still be allowed to be imported.
The risky behavior at Qualcomm has to be laid at the feet of CEO Paul Jacobs, son of the company’s founder. He has elected to fight every fight and turn away from compromise.
Now that Broadcom has had a success, other competitors are likely to press harder.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
