Qualcomm Launches $150M Startup Fund, Monopoly Reports Begin To Crop Up.
There seems to be some positive news and negative news for China recently, when it comes to Qualcomm, the US giant that develops chipsets for smartphones, tablets, PCs and other gadgetry.
First thing off, the positive news, consisting of Qualcomm announcing a brand new $150 million fund dedicated towards startups based in China. The company’s Chinese portfolio have included Xiaomi, which has just recently revealed their new upcoming Mi 4 smartphone this week, and Dolphin Browser, which has recently just sold a majority 51 percent share to a Chinese games company.
Qualcomm began investing during 2000, though its VC stretch didn’t enter into China until 10 years ago. With its newest fund, it’s looking specifically for mobile-focused startup involving with the internet, e-commerce, semi-conductors, education and health. Along with this recent announcement, Qualcomm has also unveiled over two new investment for the very first time: education platform Cambridge Wow, and health startup Boohee.
“Chinese companies receiving investments from Qualcomm can benefit from Qualcomm’s insights on mobiletechnologies and leverage [our] relationships throughout the industry,” said the US company in a statement.
Up Next would be the negative news, State media within China have begun to report that the country’s antitrust regulator have deemed Qualcomm to be holding onto a monopoly, which was explained by Reuters.
The National Development and Reform Commission launched an investigation during February following reports that Qualcomm was raising its prices in China, and thus abusing its position within the market. Additionally, a reporty from the Securities Times suggests that the commission is also investigation whether Qualcomm undercut Chinese rivals by charging even less fo its patent to win over new customers.
Any sort of findings during the investigation have yet to bee announced by the commission, but a guilty verdict would seem to most likely bring with it a significant financial penalties. China’s anti-monopoly laws can be used to fine a company as much as more than 10 percent of its most recent annual revenues, this could see Qualcomm hit with a fine a grand as $1.2 billion.
Even without the mentioned fine, the company has revealed that ongoing investigation have hampered its business within China. It’s been said that China can bee accounted for nearly half of the company’s global sales during the pas year, and issues in the country could lead the company to cut its outlook for the next quarter of business.