The problem with having a product that’s popular in China is that, due to a variety of issues, that product will most likely ONLY be popular in China. With smartphones in particular, it can be quite difficult for Chinese companies to get their products overseas, which is why Qualcomm has launched a new unit dedicated to helping Chinese companies sell their products in other countries.
Qualcomm Inc. has launched a unit to help Chinese smartphone makers sell overseas, part of efforts to build stronger relationships in the country following a long-running antitrust case. The move is part of the U.S. chip maker’s efforts to prove itself a valuable partner in China at a time when Beijing is trying to reduce its reliance on foreign makers of chips and other technology. Qualcomm draws about half of its revenue from customers in China, but the company has run into a series of challenges there. Qualcomm, which is the biggest maker of chips for smartphones, gets about two-thirds of its profits from licensing its wireless patents. That business model was the subject of a 15-month investigation by Chinese antitrust authorities, which analysts believe was prompted by several major Chinese smartphone makers complaining that Qualcomm was pricing its technology unfairly.