NEW YORK, Nov 12 (Reuters) - Qualcomm Inc (QCOM.O) said LG Electronics Co Ltd (066570.KS) is one of three major phone makers that agreed to license its 4G high-speed wireless technology, solidifying its position in the mobile market for years.
LG, the No. 3 mobile phone maker, also renewed its agreement for Qualcomm's existing third-generation technology, Qualcomm said at its annual investor meeting on Thursday.
Qualcomm had previously announced that LG's larger rivals Samsung Electronics (005930.KS) and Nokia (NOK1V.HE) have agreed to pay to use Qualcomm's technology in future products based on fourth-generation (4G) wireless technology.
"This means they have 65 percent of the handset market signed up to long-term royalty agreements," JP Morgan analyst Steven O'Brien said. "We have more certainty in the royalty streams and cash flow streams from the major handset vendors."
However, O'Brien noted that it was not clear what rates these companies agreed to pay Qualcomm as the companies keep the terms of their licensing agreements confidential.
Qualcomm competes with Texas Instruments Inc (TXN.N) on chips for applications such as mobile Web surfing. Both are looking to smartphones and smaller laptops for growth.
At the meeting, Qualcomm gave a brief glimpse of a mini-computer based on its Snapdragon application chips that Lenovo Group Ltd (0992.HK) plans to launch at the Consumer Electronics Show in January.
The device, which will connect to the Web over AT&T Inc's (T.N) cellular network, will be the first in the so-called smartbook category of small mobile computers.
Thanks,BP
LG, the No. 3 mobile phone maker, also renewed its agreement for Qualcomm's existing third-generation technology, Qualcomm said at its annual investor meeting on Thursday.
Qualcomm had previously announced that LG's larger rivals Samsung Electronics (005930.KS) and Nokia (NOK1V.HE) have agreed to pay to use Qualcomm's technology in future products based on fourth-generation (4G) wireless technology.
"This means they have 65 percent of the handset market signed up to long-term royalty agreements," JP Morgan analyst Steven O'Brien said. "We have more certainty in the royalty streams and cash flow streams from the major handset vendors."
However, O'Brien noted that it was not clear what rates these companies agreed to pay Qualcomm as the companies keep the terms of their licensing agreements confidential.
Qualcomm competes with Texas Instruments Inc (TXN.N) on chips for applications such as mobile Web surfing. Both are looking to smartphones and smaller laptops for growth.
At the meeting, Qualcomm gave a brief glimpse of a mini-computer based on its Snapdragon application chips that Lenovo Group Ltd (0992.HK) plans to launch at the Consumer Electronics Show in January.
The device, which will connect to the Web over AT&T Inc's (T.N) cellular network, will be the first in the so-called smartbook category of small mobile computers.
Thanks,BP
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