Qualcomm Is Down but Certainly Not Outhttp://www.fool.com/investing/general/2012/04/24/qualcomm-is-down-but-certainly-not-out-.aspx Keki Fatakia
April 24, 2012
CDMA pioneer Qualcomm (Nasdaq: QCOM ) recently posted strong, second-quarter numbers that comfortably exceeded analyst expectations. The company's revenue went up by almost 28% from the prior-year period, hitting $4.9 billion. Net income also rose by an astounding 123% up to $2.2 billion from $999 million last year.
However, despite the great show, Wall Street gave Qualcomm a thumbs-down as the company's shares took a hit. Let's find out why.
A few bumps on the road
With companies such as Samsung, Apple, and HTC accounting for almost 30% of Qualcomm's chip sales, the supply shortage possibly could affect the production of a lot of other upcoming cellphones as well.
Reasons for optimism
Remember, the good part is that the problems Qualcomm is facing are not because of lack of demand, but rat