Qualcomm is unfazed by Nokia's decision to stop making mobile phones based on Qualcomm's CDMA technology and that Nokia's move would not affect Qualcomm's 2006 financial outlook, a Reuters report said.
Earlier, Nokia disclosed it had scrapped plans for a venture with Japan 's Sanyo Electric to produce phones based on CDMA, citing concerns about CDMA's growth prospects and the venture's technology-licensing terms.
'Its not a surprise to us that Nokia is announcing it's stepping back from the CDMA business because I don't think they had that much success,' Qualcomm CFO Bill Keitel told Reuters in an interview.
Nokia, the world's biggest mobile phone maker, and Qualcomm, the dominant designer of chips for CDMA, have had an acrimonious past, fighting over everything from competition rules and technology standard setting to licensing fees, reports said.
Qualcomm's shares fell 6% on news of Nokia's pull back from CDMA phones, which raised concerns about the prospects of CDMA and disappointed investors who saw the venture as a boost in demand for Qualcomm chips, the Reuters report said.
CDMA is the main wireless technology used in the US , but globally only has a 25% to 30% share of mobile subscribers.
GSM is used by about 70% of the world's two billion mobile phone users.
Keitel said he was standing by his forecasts for Qualcomm's 2006 financial results and handset market, because other companies, such as Motorola , Samsung and LG would continue to sell phones based on cdma2000.