Nov 15 (Businesshala) – Qualcomm Inc.’s (Qcom.o) fortunes once believed investors rose and fell with Apple Inc.’s (AAPL.o) iPhone, which used to connect to mobile data networks Uses a significant “modem” chip from the San Diego company. ,
But as Qualcomm prepares for an investor presentation Tuesday, where it will outline plans to roll out its chips in everything from virtual reality headsets to self-driving cars to telecommunications gear, analysts said Apple Has a major disadvantage, which is working on its own chips. Qualcomm’s place, may not matter much to Qualcomm’s profits.
“Frankly, revenue is approaching the point where there is little to worry about with Apple going away,” Bernstein analyst Stacey Ragson wrote in a note.
The change comes from a diversification strategy laid out years ago by Cristiano Amon, who ran the company’s chip division before becoming chief executive this year.
Earlier this month, Qualcomm said it expected adjusted earnings growth of more than 20% for fiscal 2022, where Wall Street was expecting only 12.5% growth, IBES data from Refinitiv said. According to. The company’s shares have risen about 19% since Qualcomm’s forecast.
“Anything beyond our contract with (Apple) is an upside to our model,” Amon said during the earnings call on November 3. “They have a huge number of devices. And if there is an opportunity, we will be very happy to engage. On supplies with them.”
Analysts said Apple’s business is not likely to shut down all at once. “It’s a matter of when,” said Evercore ISI analyst CJ Muse, who leaves Apple.
But CFRA Research’s Angelo Zino said Apple will likely leave in phases, initially only offering internal chips for one or two devices.
And in the meantime, Qualcomm has regained market share among Android phones as Qualcomm customers fill the void left by Huawei’s exit from the smartphone market. Brands like Honor from China are turning to US chip firms for supplies.
“Qualcomm’s China handset (revenue) is growing faster than Apple’s, which is helping to offset any Apple cuts,” said Patrick Moorhead, founder of Moor Insights & Strategy.