This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Qualcomm to Return 75% of Free Cash to Shareholders

NEW YORK (TheStreet) -- Qualcomm (QCOM) was slipping 0.2% to $71.95 as the company host its analyst day in New York, focusing on LTE deployment and capital allocation.

Qualcomm, which is live streaming the event, announced it will return 75% of its free cash flow to shareholders through dividends and buybacks.

Last year, Qualcomm bought back $4 billion in stock last year, and recently announced an 11% increase to its dividend.

Qualcomm's senior vice president Bill Davidson was kind enough to make a visit to TheStreet's New York offices yesterday, where we talked about LTE deployment in 2014, average selling prices (ASPs) and why the company announced the new Toq smartwatch.

Davidson noted that there are 222 networks in 83 countries with LTE capabilities, and that there will be continued deployment in 2014, especially in data heavy areas.  Davidson noted that we're headed towards more ubiquitous coverage, though we're not there yet.  As for when he thinks we're likely to see 4G really sprout up in China with China Mobile (CHL) launching its much-awaited 4G network, he thinks it's likely it happens around the Chinese New Year, but that it was just a guess, and nothing official.

With regards to the slight 1% decline Qualcomm saw in ASPs saw this past quarter, Davidson noted it was more about mix than price erosion, as emerging markets are not dragging down ASPs as much as people thought.  The smartphone market will continue to get bigger for emerging markets,  he noted.

Operating margins, which has been something of a concern on Wall Street, will likely improve towards the back half of 2014, due to mix and the San Diego-based Qualcomm keeping costs in line.  Year over year, the licensing business and the chip business continue to be stable.

Regarding the Toq watch, Qualcomm is not interested in being a consumer-facing company, but Davidson noted the company is showing off what smartwatches could potentially do, as the company seeks to expand is mobile chip business into other forms of technology, outside of smartphones and tablets.

"Our next big challenge is something we call the 1000x challenge," Davidson said.  "It's about expanding the capacity 1000 times over the next ten years, as data becomes a bigger part of our daily needs."

In separate announcements Wednesday, Qualcomm introduced its fourth-generation 3G/LTE multimode solutions with the newest modem chipset, the Qualcomm Gob 9x35, and RF transceiver chip, the Qualcomm WTR3925. This will continue to advance the roll out of 4G LTE networks across the world, offering improvements in performance, power consumption and printed circuit board area requirements.

Qualcomm also announced the next generation Snapdragon 800 processor, the Qualcomm Snapdragon 805 processor, designed to deliver a better Ultra HD (4K) experience.

The Snapdragon 805 processor is expected to be available in commercial devices by the first half of 2014.

--Written by Chris Ciaccia in New York

>Contact by Email.

Stock quotes in this article: QCOM 

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs