Last year, there was concern that Chinese telecom firms like Huawei and ZTE were being used to conduct espionage against the U.S. Both companies produce networking equipment that the U.S. government said could be used for spying. Both firms also make smartphones although Huawei produces its own processors. ZTE is a Qualcomm customer and will be using its Snapdragon processor on its new high-end ZTE Nubia Z5s handset.
Jacobs sees Qualcomm gaining more market share in China as the country turns to LTE 4G service. The top three carriers in China, including the world's largest carrier in China Mobile, are said to be all ready to start offering LTE service to its customers. The carriers are merely waiting for the Chinese government to issue the proper licenses.