QUALCOMM, Inc. (QCOM) Investors Shouldn’t Stress About This

But despite the price drop for some mobile devices, QUALCOMM, Inc. (NASDAQ:QCOM) will still receive royalties off of the growing 3G industry for the next decade. Even as cheaper phones make up the majority of smartphone growth in emerging markets, Qualcomm’s 80% operating margin on its royalty business will still bring in substantial revenue for years to come.

On top of this, Qualcomm is still one of the top chipset makers. The company’s chips can be found in Apple Inc. (NASDAQ:AAPL)‘s iPhones, the U.S. version of the Samsung Galaxy S4, Research In Motion Ltd (NASDAQ:BBRY) devices, and Nokia Corporation (ADR) (NYSE:NOK) phones. QUALCOMM, Inc. (NASDAQ:QCOM) stock investors concerned with the company’s spending increase should consider both the Qualcomm’s royalty revenue and its client diversification in the mobile device market. Many in the mobile space would envy such a position.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and NVIDIA. The Motley Fool owns shares of Apple and Qualcomm.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.