Investors believed that Qualcomm will succeed without Apple orders, shares rose in price

At an investor event, Qualcomm executives yesterday made it clear that next year only 20% of Apple's iPhone modem needs will be met by the company. At the same time, further growth in Qualcomm's revenue will be provided by other lines of business. The speech by the company's management caused Qualcomm's share price to rise by 7.9% to a maximum of $ 181.81 per share.

Investors believed that Qualcomm will succeed without Apple orders, shares rose in price


In two years' time, Reuters explains , Apple's product shipments will account for only a few percent of Qualcomm's total revenues. At the same time, the chips of the input stage of the radio frequency, which in Apple devices will work in parallel with modems of their own design, may well be supplied by Qualcomm, as representatives of the latter explained. In a word, although Apple will refuse to use Qualcomm modems, it will not stop completely influencing the chip supplier's revenue.

According to the forecasts of Qualcomm's management, in two years the company's revenue may increase to $ 46 billion. By the end of this year alone, it will increase by 16%, and later, although it will be limited to an increase of 7%, it will still maintain positive dynamics. Qualcomm earned no more than $ 1 billion in the area of ​​automotive components last year, but in the next five years, profile revenue may grow to $ 3.5 billion, and in ten years it can reach $ 8 billion.

Last fiscal year Qualcomm received no more than $ 5 billion in revenue from wearable electronics, but in a couple of years it will grow to $ 9 billion. Virtual reality devices will also add positive dynamics in this area. The former Facebook's Oculus Quest 2 has already sold over 10 million units, according to third-party sources. In the smartphone segment, further revenue growth will be determined by the popularity of Android devices, and in the face of a shortage, priority will be given to completing more expensive models. Last quarter, shipments of chips for flagship smartphones brought Qualcomm 56% more revenue than a year earlier.

The Internet of Things will drive Qualcomm's revenue growth in the industrial sector, where smart meters, retail and warehouse equipment will be in growing demand. Last quarter, the IoT division posted a 66% increase in revenue to $ 1.54 billion.

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