Strong demand for iPhone 12 is helping Qualcomm
Qualcomm has just reported its financial results of the first quarter and it was a good one.
Revenue increased 62% year on year from US$5.077 billion to S$8.235 billion, while net income increased a whopping 165% from US$925 million to US$2.455 billion.
Qualcomm said a part of this is because of strong demand for Apple’s new iPhones. Apple, for their part, reported record-breaking revenue of US$111.4 billion during the holiday quarter thanks to its new phones.
Outgoing CEO Steve Mollenkopf said:
The chip business is really growing like crazy. It’s all the things we’ve been talking about — growth in content and growth in devices that’s significant sequentially and year over year.
While this is all good news, there’s some concern for the future as Apple is widely rumoured to be working on its own 5G modem. In fact, Apple purchased Intel’s modem business back in 2019 for US$1 billion.
To that, Mollenkopf said:
Huawei shedding so much share provides a big opportunity for us to grow. The addressable market has grown, so that’ll start to be a bit of a tailwind for us as we get supply and have the ability to go after it.
Incoming CEO Cristiano Amon also warned of chip shortages in the first half of the year. And said that the world is only relying on a handful of chip companies around the world. He expects supply to catch to up with demand by the second half of this year.
Source: Wall Street Journal via AppleInsider