Is Qualcomm Stock Halal?
Table of Contents
How much of Qualcomm’s revenue comes from haram?
Qualcomm earns its revenue from the following revenue sources:
- Equipment and Services:
Includes sales of products used in mobile devices, including Mobile Station Modem (MSM™), radio frequency (RF), power management (PM), and wireless connectivity integrated chipsets.
- Licensing:
Includes revenue generated from royalties and licensing fees to use portions of Qualcomm’s intellectual property portfolio.
The contributions from each of Qualcomm’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Qualcomm’s revenue comes from anything inherently haram.
Does Qualcomm rely on interest to operate?
Qualcomm reports its interest income in conjunction with its dividend income.
| Year-to-Date for period ended 6/27/2021 | Fiscal year ended 9/27/2020 | Fiscal year ended 9/29/2019 | |
|---|---|---|---|
| Interest Income + Dividend Income | $43,000 | $156,000 | $300,000 |
| Total Revenue | $15,995,000 | $23,531,000 | $24,273,000 |
| Interest Expense | $279,000 | $602,000 | $627,000 |
| Total Expenses | $11,634,000 | $17,276,000 | $16,606,000 |
| Interest Income / Revenue | 0.27% | 0.66% | 1.24% |
| Interest Expense / Total Expense | 2.40% | 3.48% | 3.78% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Qualcomm’s operations.
What is Qualcomm’s Environmental, Social, and Governance (ESG) impact?
Environment
Qualcomm reduced its GHG emissions for its operations in India by approximately 22,485 tons of carbon dioxide equivalent through the purchase of solar energy for its Bangalore offices.
Social
Qualcomm has a high Glassdoor rating of 4.1 out of 5.0 from over 8,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Comfort Rating
From Qualcomm’s business, financial, and ESG reviews, Practical Islamic Finance rates Qualcomm stock as: