The company has announced that it will reduce the supply of chips to 5G phones, including the Apple Incon iPhone. Qualcomm’s revenues rose 63% to $ 8 billion as sales of connected devices increased by $ 1.4 billion.
A San Diego, California-based company, the largest provider of mobile phone chips and a leader in 5G technology, iPhones offer modem chips that help connect cable data networks and modems and central processors to most of the Android market.
As a result, market capitalization rose from 3.1% to $ 146.86, easing some concerns among investors about the impact on the smartphone market, including the iPhone. Qualcomm CEO Chris Amon said during a conference call that investors’ efforts to protect the company’s chips from a number of manufacturing partners were growing, with the first major cash flows coming in the third quarter and in the coming months. .
“We are still working to improve our supply at the end of the calendar year,” Amon said. The company is also benefiting from the launch of Chinese smartphone company Huawei Technologies Limited from the global smartphone market.
Qualcomm has increased sales of other chips, such as radio frequency chips, which include 5G phone chips and doubled sales last year. Sales for cars and “Internet of Things” or IoT, applications for various chips are also growing. Qualcomm said last Wednesday that sales of those chips are expected to reach $ 10 billion this year, up from $ 6 billion last year.
The company expects to make a modest profit of $ 8.24 per fiscal year, which doubled a year ago. According to referral data, Qualcomm chip revenue forecast for the current quarter was $ 7.25 billion.
While many bottlenecks have reduced their own bottlenecks when it comes to manufacturing, some Qualcomm customers say they can’t get the support chips they need to make complete equipment from other suppliers. “We will continue to see strong demand in every business supply,” he said in a statement.
Apple on Tuesday predicted a chip shortage would hit the iPhone in the fourth quarter. On Wednesday, Qualcomm said global sales for 521 5G phones could reach a peak of 450 to 550 million handsets. That means phone makers may be leading any chips that are lacking to produce more profitable 5G devices.
Apple shares rose 0.14% in hourly trading after Qualcomm results. “While there are some segments of the chipset industry in the smartphone industry, we don’t think the content will cause any significant setbacks as the industry will give priority to 5G over 4G,” said analyst Kingai Chan. At Summit Insights Group.
According to Refinev, Qualcomm’s total sales and adjusted earnings are estimated at $ 8.8 billion and $ 2.25 billion per share, $ 8.50 billion and $ 2.04 per share. According to reference, the company has forecast $ 1.55 billion in median revenue from its patent business.
For the third quarter of the fiscal year ended, Scomcom’s gross domestic product (GDP) was $ 8 billion and $ 1.92 per share, more than $ 7.58 billion and $ 1.68 per share, according to the report. Qualcomm remains the largest seller of mobile phone chips, up 57% to hit $ 3.86 billion in the first quarter. Qualcomm has done an amazing job of driving the 5G ecosystem. It is definitely moving faster than 4G, ”said Paolo Pescatore, a PF-Forcity analyst.
Radio frequency chips and IoT chips, respectively, sold 114%, 83%, $ 957 million and $ 1.4 billion a year ago, respectively.