Chipmakers sacrifice margins for volume in booming China

11/19/2013 | Reuters

U.S. chipmakers are making less money per sale in the growing Chinese smartphone market, but revenues are rising by double-digits. Qualcomm, Synaptics and other vendors are selling chips to Chinese phone-makers who are pumping out popular low-priced Android phones, a move that has hurt their margins but, according to Jeffrey Schreiner of the Feltl & Co. brokerage firm, "The trade-off is that you're going to chase the growing part of the market with high volumes."

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