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Apple modem provider Qualcomm rode the 5G wave to a Wall Street beat for its fourth fiscal quarter of 2020, and expects momentum to construct heading into the December interval.
Qualcomm reported income of $6.5 billion for the quarter ending in September, with web earnings up 76% year-over-year. That determine simply beat analyst consensus of $5.93 billion, reports CNBC.
As anticipated, the chipmaker is cashing in on investments made in 5G applied sciences IP. The proliferation of 5G networks has prompted smartphone producers to shortly undertake the protocol, and Qualcomm modems are powering a big bulk of these handsets.
“Our fiscal fourth quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses,” mentioned Qualcomm CEO Steve Mollenkopf.
In an investor convention name following Qualcomm’s incomes launch, Mollenkopf mentioned the outcomes included a “partial quarter impact” from a big U.S. handset maker, the report mentioned. Apple, possible the unnamed producer, didn’t see the identical advantages in its fourth quarter earnings due to a later than common iPhone 12 debut in October.
The chipmaker is guiding for revenues between $7.Eight billion and $8.6 billion for the December quarter, suggesting a manufacturing ramp of iPhone and different smartphones.
Apple, a longtime Qualcomm associate, is utilizing the agency’s X55 chip to hyperlink iPhone 12 with 5G bands. A more moderen model of the modem, the X60, launched in February and will see inclusion in Apple’s next-generation “iPhone 13.”
The Cupertino tech big is extensively rumored to debut its personal mobile modem after shopping for Intel’s modem enterprise for $1 billion in 2019. Fruits from that buy, and previous inside {hardware} growth, aren’t anticipated to be prepared till 2022 or 2023, and Apple has promised to depend on Qualcomm till a minimum of 2024.
Qualcomm expects some 200 million 5G-capable smartphones to ship in 2020, with that quantity growing to 500 million in 2021.
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