In 2021, the company expects to ship 450 million to 550 million 5g smartphones, at least twice the total expected this year. Molenkov, mobile chip sales are the companys main driving factor in the quarters earnings. He added that other devices using its 5g chip, such as Internet of things devices and network devices, would also benefit Qualcomm.
I think the epidemic has convinced people that these technologies are now more important than they thought, he said
Even excluding the cost of the licensing agreement with Huawei, Qualcomms revenue in the current quarter was 35% higher than that in the previous year. As a result of Huaweis fees, Qualcomms earnings per share more than tripled from a year earlier. Excluding this amount, Qualcomms earnings per share also increased.
The result exceeded Wall Streets expectations. Analysts expect revenue of $5.9 billion and earnings per share of $2.23, excluding fees paid by Huawei. Qualcomm shares rose more than 10% in after hours trading on Wednesday.
The companys strong performance comes as it has withstood several years of legal challenges in licensing key telecommunications technologies. Some competitors and regulators have argued that Qualcomms licensing practices were unfair. Apple and the Federal Trade Commission (FTC) sued Qualcomm in 2017, accusing it of taking advantage of its position as a key chip supplier to gain a dominant position in licensing.
The company settled with apple in April last year, and the company won a lawsuit filed by FTC. Last month, the federal court of appeal refused to review the ruling in favor of Qualcomm, making it the only way for FTC to appeal to the Supreme Court.