Qualcomm narrows focus, sells handset business.
Published:
29 December 1999 y., Wednesday
Qualcomm agreed Wednesday to sell its mobile phone manufacturing division to Japanese handset maker Kyocera Corporation for an undisclosed sum, clearing the way for Qualcomm to focus on its
more profitable businesses. The two companies announced that they have reached an agreement to sell Qualcomm_s CDMA phone business to Kyocera, including inventory, manufacturing equipment and
customer commitments. In addition, Kyocera will purchase Qualcomm chipsets and software for the next five years, the companies said. The Japanese phone maker estimates it will double its production of wireless handsets to 16 million units next year as a result of the deal. Aside from the boost it gives Kyocera in the U.S. market, the deal reflects the growing import of wireless technology, specifically wireless Internet-enabled cell phones, as the industry shifts from focusing on general purpose PCs to
single or limited-function devices capable of accessing the Internet and providing two-way communications. In the last month, Microsoft and Palm Computing, for example, have struck deals to
put their software on the Web-enabled phones of Ericsson and Nokia, respectively.
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