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
Telecom providers and analysts believe Apple launched several 5g phones last month that will boost demand for 5g network services. Before that, most people had a wait-and-see attitude towards 5g. Theyve been waiting for 5g to come true. Hans vestberg, chief executive of Verizon, a telecoms service provider, told Apples iPhone launch that the advent of the iPhone 12 made the wait over..
5g mobile phone is expected to be the main beneficiary of Apples launch. This was reflected in sales in the fourth quarter, but will be more significant in the coming quarters, he said.
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.
Demand for 5g products is expected to drive a wave of acquisitions that may reshape the U.S. chip industry. Last month, Marvell said it would buy inphi, in part because of its 5g business. NVIDIA and AMD have also proposed large-scale acquisitions. Bob swan, Intels chief executive, said last month that the company might invest in 5g technology with some of the money from the sale of its flash manufacturing business. (Chen Chen)
CEO of Qualcomm has applied to sell chips to China. Source: Netease technology report editor in charge: Wang Fengzhi_ NT2541
The CEO of Qualcomm said it had applied to sell chips to Huawei