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Qualcomm’s stock fell 10% in just one day due to unfavorable conditions from South Korea.
According to foreign press, Qualcomm’s stocks that have a string on Smartphones’ communication chips’ markets fell 9.4% on the 19th from the 18th (current time). This is its lowest point in recent 4 years.
This happened immediately after when Qualcomm submitted a statement to its headquarters in the U.S., received an examination report from Fair Trade Commission in South Korea regarding violation of anti-trust, and announced that it will bring up an objection to it. South Korea is a huge market for Qualcomm as it takes up 16% of Qualcomm’s overall sales.
“Fair Trade Commission brought up an issue that abuse of rights to patents corresponds to violation of faire trade laws. We expect there will be significant amount of fines imposed to us and we might have to change practices of certain businesses.” said Qualcomm on a press release.
“Investigation by Fair Trade Commission regarding our violation is not based on facts. There are errors when laws were applied.” said Qualcomm regarding how it thinks about Fair Trade Commission’s investigation.
Meanwhile Qualcomm received suspicion from Fair Trade Commission about how it did not give licenses regarding Gen.3 CDMA (Code Division Multiple Access) or Gen.4 LTE to its communication chip competitors and forced unreasonable signing of contract for licenses.
A criticism how Qualcomm took advantage of loyalty profiteering was also brought up. It is known that Qualcomm receives 5% loyalty of Smartphones’ wholesale price rather than price of communication chips.
Staff Reporter Yu, Changsun | [email protected]
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