The most immediate of its problems were outlined with the publication of its Q3 results; revenues down by $1.1bn over the previous quarter and 14% down on Q3 2014. An equally pressing problem is attention from a New York hedge fund pushing Qualcomm's board to do something about it and to create what is called 'shareholder value'.
The hedge fund, called Jana Partners, published a six point plan for Qualcomm. Qualcomm responded with a strategic realignment plan featuring those six points, but in a different order.
Is it complacency? Qualcomm has been the 'go to' supplier for a wide range of smartphone developers, who have used the Snapdragon processor at the heart of their devices. But there are rumblings about one of the Snapdragons not performing as anticipated. Customers have moved, it is said, to other phones and companies have moved to other processor suppliers.
Is it the fact the company has too much 'fat'? Qualcomm appears to think so and is looking to cut more than 4500 staff, but without 'jeopardising its technology leadership'.
Or is it really 'just' growing pains? Qualcomm isn't the first mega company to experience financial turbulence. IBM was almost bankrupt in 1993, when Lou Gerstner took over and turned the company round. Apple, in its early days, realised it couldn't keep growing at 100% a year by only selling one type of product. In the mid 1990s, the seeds were sown for its current success, with experiments around cameras, CD players and other consumer items, including the ill fated Newton PDA. Its CEO in the late 1990s, Gil Amelio, did however make one good decision amongst a range of more questionable ones – bringing Steve Jobs back into the company.
Qualcomm now finds itself in a similar position; where now? Parachuting in a 'visionary' CEO? Ripping it up and starting again?
Jana wants Qualcomm to think about splitting in two: a microelectronics company; and an IP licensing company. And if it does, would one of them be 'on the block'?
If it's the chip company, some observers are suggesting that Intel could be interested. That makes some sense, bearing in mind its ambitions for the mobile phone sector have yet to be matched by achievement. But would Intel have deep enough pockets?
Whatever happens, it's going to be 'interesting times' in the Qualcomm executive suite as it looks to reinvent itself.
