Qualcomm is getting its veteran executive back to lead operations six months after authorities clamped down and fined the U.S. chipmaker $975 million for an antitrust allegation. The veteran Frank Meng had been in charge of the Chinese business of Qualcomm from 2008 to 2010. He will now replace Xiang Wang, on June 15. Qualcomm has principal clients in China such as Lenovo, Huawei, and Xiaomi and is an important market for the U.S. Company.
The company group president Derek Aberle, commented that with Frank’s wide-ranging experience, and direction the company would endure and strengthen the partnership with Chinese semiconductor and mobile ecosystem sector. Qualcomm had settled the case for the largest antitrust charge in Chinese history in February. The company had been accused of overpricing local manufacturers for using their technology. The chipmaker company is strongly reliant on revenues from its licensing patents, and more than half of this revenue came from China last year amounting to $26 billion. Qualcomm has also been eager to start afresh after the clampdown.
Additionally, Qualcomm has bigger issues. The company has reduced its revenue outlook for this year by $1 billion due to missing out on Samsung’s latest smartphones. Even Apple iPhone’s main Processor is not a Qualcomm product. The group president Aberle told Financial Times at the Boao Economic Forum, in Davos in March that among the lessons they have learned is that they needed to be engaged more than they had been earlier, in the business.
The company had also been fined in 2009 by South Korea’s antitrust agency for a sum of $200 million for misusing its leading market position. In New York Qualcomm shares were up at midday by 1%.