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Telecom & Wireless

Qualcomm (QCOM): Double Trouble, Time For CEO To Go

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

It was hard to imagine that things could get worse for Qualcomm (QCOM) but they have. The company announced strong earnings this month and guided higher, but all of the other news around the firm was bad.

The White House refused an appeal of the International Trade Commission’s decision to bar imports of handsets with Qualcomm’s technology because the chips inside violated some of Broadcom’s (BRCM) patents. Verizon (VZ) took a license directly from Broadcom so that it could get phones into the US.

Nokia (NOK), Qualcomm’s largest customer, moved some of its chip sourcing to ST Microelectronics. Nokia has been fighting with Qualcomm over license fees.

Yesterday, a federal judge doubled the damages due Broadcom on three patents that Qualcomm violated. That would put the amount at about $40 million.

Qualcomm’s greed and its unwillingness to listen to either the courts or its customers has now cost the companies investors enough. Qualcomm’s share are down over 15% in the three months, and, if  legal and customer decisions keep running against the company, that will get worse.

The company needs new management and a fresh start. It is time for CEO Paul Jacobs, the son of the founder, to go.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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