Yesterday, Qualcomm Inc. (QCOM - Analyst Report) declared that it has acquired a portfolio of patents from Hewlett-Packard Co. (HPQ - Analyst Report) for an undisclosed amount.
The portfolio comprises 1,400 granted and pending patent applications from the U.S. and about 1,000 granted and pending patent applications from other countries including China, England, Germany, Japan and South Korea.
A majority of these patents are those gained by Hewlett-Packard thorough its acquisitions of Palm in 2010 and Bitfone in 2006. The patent portfolio covers a wide range of technologies that include fundamental mobile operating system techniques.
Acquisition of this patent portfolio will enable the largest CDMA based mobile chipset maker in the world to more aggressively expand into the global mobility market.
Qualcomm stated that this acquisition will add more value to its current and future licensees. The majority of the company’s profits come from licensing patents for its industry leading CDMA mobile technology and other technology related to mobile devices.
Qualcomm currently has more than 250 royalty bearing licensees worldwide. Additionally, the company has over 90 single-mode OFDMA licensees.
Earlier, the acquisition of Atheros Communications transformed Qualcomm into an integrated chipset developer for the mobile computing market. Besides mobile computing, Qualcomm can now diversify into the consumer electronics segment, particularly in the home networking market.
Atheros manufactures Wi-Fi chips for televisions, video games, printers, and other home devices. Qualcomm has already started working on the reference design for set-top boxes and other home connected devices.
Other Stocks to Consider
Qualcomm currently has a Zacks Rank #4 (Sell). However, other better-ranked stocks in the mobile chipset industry include Comtech Telecommunications Corp. and InterDigital Inc. (IDCC - Snapshot Report) . Both these stocks currently carry a Zacks Rank #2 (Buy).