Qualcomm CEO Jacob: Prism Door impacts the company's Chinese business

Tencent Technology Mowgli November 23 compiled Qualcomm chief executive Paul Yas (Paul Jacobs) said in Friday that although the company expects business in China to continue to grow, there are a number of restrictions on Chinese companies in the US, as well as the U.S. National Security Agency Agency "Prism Gate" monitors the impact of the scandal and may affect Qualcomm's business in the Chinese market. "We are seeing increasing pressure," Jacobs said in an interview. All American tech companies see pressure. "Jacob did not say that the pressure affected the sale of Qualcomm's products, but made it clear that it affected Qualcomm's business model in China." "We must be very cautious," he said. We have been careful to take every step, how to sell products, and how to communicate with customers. Jacob also said Qualcomm had already established a good partnership with some Chinese manufacturers and started making part of the computer chips in mainland China. Qualcomm has not used the most advanced manufacturing technology in the Chinese market, but has used some of the older technologies. "It's only a delicate balance right now, but there is no doubt that it does affect us," Jacob said. "In the last fiscal year ended September 29, Qualcomm's revenue from the Chinese market reached $1 billion trillion." American technology companies, including Cisco, IBM and Microsoft, are facing new challenges as they sell products and services in the Chinese market because of the impact of the "Prism gate" monitoring scandal. November 14, Cisco released its performance warning that the company's revenue from the Chinese market in the current quarter will fall 18% Year-on-year, while global revenue will fall only 8% to 10% year-on-year, and further contraction next year. This is partly due to China's intense reaction after the U.S. government monitored the project. Frank Calderoni, Cisco's chief financial officer, said at the time that the company had the most Frank Calderoni political impact in China, but could not quantify how much political and macro trends had affected the company's revenues. It needs to be clear that the prism gate is unlikely to have the same adverse effect on all American companies. Experts say Cisco is likely to be the most affected because it competes with Huawei and ZTE's two local telecoms equipment manufacturers. The Congressional Security Council said last year that Huawei and ZTE's telecoms equipment could be used to monitor U.S. citizens, which would have a serious impact on U.S. national security. Huawei and ZTE have denied it. In a report released last month, IBM reported that Chinese business revenues fell 22%, leading to a 4% fall in third-quarter profits. Mark Loughridge, IBM's chief financial officer, Mark Lavriguy that IBM's problems were mainly "the process of China's broad economic reform plan", which led to delays in some purchases. Despite the mounting pressure, Jacob still believes that Qualcomm "'s share of the Chinese market can be significantly improved." "HighThe company expects its business in China to grow sharply as China begins to deploy 4G networks.