Qualcomm Forecasts 5G Sales Increase, Records Highest Revenue Gains
Qualcomm forecast first-quarter tax revenue above Wall Street estimates on Wednesday, as it forecast 5G smartphone sales to skyrocket to more than 500 million units next year, driven in part by new Apple iPhone models. 12.
From Qualcomm shares were up 14 percent in extended trading.
The San Diego-based company is the largest provider of smartphone processors and modem chips that connect phones to wireless data networks. Has invested heavily in developing lucrative 5G technology hoping to make a profit as it becomes mainstream in mobile phones, a trend that is expected to increase with the introduction of From Apple first 5G phones last month.
Revenue from the company’s chip segment, the largest by sales, was $ 4.97 billion (approximately Rs. 36,900 crore) in the fiscal fourth quarter, compared to FactSet estimates of $ 4.59 billion. million (approximately Rs. 34,100 crore).
Qualcomm this year was again a major supplier to Apple, supplying chips that help the new iPhone 12 Models connect to high-speed 5G networks. Apple did not provide a forecast of its sales during the current quarter, making Qualcomm’s chip sales one of the few indicators for investors to measure the progress of new iPhones.
But Qualcomm is supplying 5G chips to a wide swath of phone makers beyond Apple, which is driving revenue and profit growth. From Apple iPhone launched a month later than usual and, although it did not name Apple, Qualcomm’s CEO Steve Mollenkopf told Reuters in an interview that the contribution from new clients in the quarter was small.
“The results that we just printed really include less of an impact than you would normally see with one of the new customers that we are increasing, simply due to the timing of their launch,” he said.
Shares of Apple rose 0.6 percent after the announcement of Qualcomm’s results.
Qualcomm said it shipped 162 million chips capable of wireless data connections during its fiscal fourth quarter, compared to FactSet estimates of 155.3 million.
Based on the shipments, the median selling price of the potato chips was $ 30.9 (approximately Rs 2,300), up from US $ 29.3 (approximately Rs 2,200) in the previous quarter. That’s partly because Qualcomm is increasingly combining its processor and modem chips with radio chips that drive up retail prices. Sales of those radio chips nearly doubled from the previous quarter to $ 852 million (roughly Rs. 6.3 billion rupees) in the fourth quarter, helping drive adjusted earnings per share of $ 1.45 (roughly Rs. 100 ) versus the estimate of $ 1.17 (roughly Rs.90), according to data from Refinitiv.
“This is really the 5G story that is playing out in a big way in our business,” Mollenkopf said.
Qualcomm expects chip segment revenue in the range of $ 6.2 billion (roughly Rs. 46,050 crore) to $ 6.8 billion (roughly Rs. 50,500 crore) for the unit during the first quarter, ahead of the FactSet estimates of $ 5.71 billion (approximately Rs. 42.4 billion rupees).
Qualcomm, which makes most of the profits from its licensing business, said the unit’s revenue was $ 1.51 billion (roughly Rs. 11.2 billion rupees), above FactSet estimates of $ 1.30 billion (approximately Rs. 9.7 billion rupees).
The company said it expects current quarter overall revenue of between $ 7.8 billion (approximately Rs. 57.950 crore) and $ 8.6 billion (approximately Rs. 63.4 billion rupees), compared to analyst estimates. of $ 7.15 billion (approximately Rs. 53.1 billion rupees), according to Refinitiv’s IBES Data.
Mollenkopf told Reuters that the company expects overall 5G phone shipments this calendar year to be at the top of the company’s expected range of 175 million to 225 million units. The company also raised its forecast for 5G phone shipments for 2021 to a midpoint of 500 million units.
He also said that Qualcomm has applied for licenses from the United States government to ship chips to Huawei but has received a response from US officials.