Technically: Qualcomm had a sound quarter following the release of Apple’s iPhone 12, and the company is now confident it can leverage Huawei’s misfortune to expand the addressable market place for its mobile chips.
Qualcomm’s gain report landed today, and it is similar to the company rode the iPhone 12’s send of success and impressed around the globe with better than expected financial gains.
In the fiscal quarter ending December 35, 2020 (Q1 of FY2021), Qualcomm made no less than $8. 24 thousand in revenue, a 62 p . c year-over-year increase. And while that bought fall short compared to the projected $8. 25 billion figure thrown around by analysts, net income was $2. fouthy-six billion, almost 18 percent beyond expected and nearly two times as long as the same quarter of the previous acusador year.
Amazing CEO Steve Mollenkopf noted even though an investor call, “the chip stunt is growing like crazy, ” attributing excellent financial results on the insatiable need its Snapdragon Mobile Platform anticipations of your partner strong sales of its modems. The that is thanks to a deal with Apple inc to supply 5G modems for free iphone 4, but the company also makes money totally from licensing its extensive list of valid patents to other companies.
Mollenkopf believes Qualcomm’s future for the coming year looks unusually good in the light of ever-growing transact restrictions imposed on Huawei mainly because of the US. Simply put, demand for Huawei cellphone outside of China is slowing down, which is employ other smartphone vendors that buy their chips from Qualcomm faster than they can be made. The only problem deserted to figure out is supply shortages, for the reason executive acknowledged it would directly increase how much the company will capitalize from the opportunity.
In the meantime, Huawei is exploring the perception of building a chip manufacturing plant having Shanghai, but that’s several years coming from turning the tide for the Truly company.