Qualcomm’s first-quarter revenues projected to be over half a billion units next year, led partly by the new Apple iPhone 12 models, were reported on Wednesday. In extended trading, Qualcomm’s shares were up by 14%.
The company based in San Diego is right now the largest producer of processors for smartphones and microchips. It connects phones to a data network which are wireless in nature. It has invested heavily in the development of lucrative 5 G technology in the hope of profit by becoming a mainstream mobile device. This will rise as the first 5 G phones of Apple were introduced last month.
Qualcomm Earns strong revenue in Q4 2020
The chip business of the company, has the highest sales revenue, in the fourth quarter of the fiscal year which is around $4.97 billion (about Rs. 36.900 crores), compared with an overall FactSet of $4.59 billion ( approximately Rs. 34,100 crores).
This year, Qualcomm managed to set up a major partnership with Apple. By providing chips to connect high-speed 5 G systems to the new iPhone 12 models. In the current period, Apple did not forecast its revenues which makes Qualcomm’s chip sales one of the few proxies that will enable investors to gauge the production of new iPhones.
But Qualcomm delivers 5G chips to other wide variety of phone makers apart from apple, which profits its growth. iPhones of apple launched a month later than usual. While he did not take the name of Apple, Chief Executive Steve Mollenkopf of Qualcomm told people in an interview that new consumers had made only a minor investment in the fourth quarter.
After reporting the performance of Qualcomm, Apple shares grew by 0.6 percent. Qualcomm reported that during its fourth fiscal quarter it delivered 162 million chips that could link wireless data, compared with FactSet figures of 155,3 million.
The average chip sale price was, based on shipments, $30.9 in the previous quarter (approximately Rs. 2,300) higher than $29.3. This is partly because Qualcomm pairs its modem and processor chips with radio chips which push sales prices up more and more. Refinitiv data shows that radio chips revenue almost doubled from a previous quarter to $852 million ( approximately Rs 6,300 crores) in the fourth quarter to help drive $1.45 (approximately Rs 100). This opposed to an estimation of $1.17 (approximately Rs 90).
Qualcomm expects more with 5G on iPhone 12
“The reason that our business getting fantastic responses is due to the story of 5G,” said Mollenkopf. Qualcomm expects the unit chip division to produce sales of approximately $6.2 billion (Rs. 46,050 crores) to $6.8 billion (Rs. 50,500 crores) in the first quarter of this year, up from projected FactSet of $5,71 billion (Rs. 42,400 crores).in co These unit sales are $1,51 billion (around Rs. 11,200 crores) over FactSet figures of $1,30 billion approx. Rs. 9,700 crores (said Qualcomm who receives much of its income from their licensing business)
According to IBES data from Refinitiv, the firm predicts gross current-quarter sales of $7.8 billion (approximately Rs. 57,950 crores) to $8.6 billion ( approximately Rs. 63,400 crores), contrary to analysts projections in the range of $7.15 billion ( roughly Rs. 53,100 crores).
The industry expects 5G handset shipment to the largest in the Company’s projected range of 175 million to 225 million units in this calendar year. The business has also increased predictions of 5G smartphone shipments in the year 2021 to a midpoint of 500 million units.
Qualcomm revenue in Q4
Qualcomm also hinted that the US administration had demanded licenses to export chips to Huawei. But has not received a reaction from American authorities. For more updates check jcpenneykiosk.
This article has covered information regarding the increased revenue in Q4. That yet to get boosted by the iPhone 12 because it has 5G. They expect even more raises in revenues by the time 2021 comes, a raise of around the midpoint of 500 million units expected.