Qualcomm predicted on Wednesday that its first-quarter revenue will be higher than Wall Street’s expectations, as it expects sales of 5G smartphones to surge to more than 1 billion next year, some of which will be provided by the new Apple iPhone 12 models.

Qualcomm’s stock rose 14% in after-hours trading.

The San Diego-based company is the largest supplier of processors for smartphones and modem chips used to connect phones to wireless data networks. It has invested a lot of money to develop lucrative 5G technology, hoping to profit as it becomes the mainstream of mobile phones. With the introduction of the first batch of 5G phones by Apple last month, this trend is expected to accelerate.

FactSet is estimated to be US$4.59 billion (approximately Rs 34,100 crore), and the company’s chip division’s revenue (in terms of sales) is the largest, at US$4.97 billion (approximately Rs 36.9 billion) in the fourth quarter.

Qualcomm has once again become Apple’s main supplier this year, providing chips that can help new iPhone 12 models connect to high-speed 5G networks. Apple did not give a sales forecast for the current quarter, which makes Qualcomm’s chip sales one of the few agents for investors to evaluate the progress of the new iPhone.

However, Qualcomm is providing 5G chips to many mobile phone manufacturers outside of Apple, which is driving revenue and profit growth. Apple’s iPhone was released a month later than in previous years. Although he did not reveal Apple’s name, Qualcomm CEO Steve Mollenkopf said in an interview with Reuters that the number of new customers in the quarter The contribution is small.

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He said: “The results we just printed really have a smaller impact on you than you see on one of our new customers that we are adding.”

After Qualcomm announced its results, Apple’s stock price rose 0.6%.

Qualcomm said that in its fourth fiscal quarter, it shipped 162 million chips capable of wireless data connections, while FactSet estimated it to be 155.3 million.

According to the shipment volume, the average selling price of the chip is 30.9 US dollars (about 2300 rupees), higher than the 29.3 US dollars (about 2200 rupees) in the previous quarter. Part of the reason is that Qualcomm is increasingly comparing its modem and processor chips with radio chips, driving up prices. Sales of these radio chips nearly doubled in the fourth quarter from the previous quarter, reaching 852 million US dollars (about 63 billion rupees), driving adjusted earnings per share to 1.45 US dollars (about 100 rupees), higher than expected $1.17 (approximately 90 rupees). , According to Refinitiv data.

Mollenkopf said: “This is indeed a major 5G story in our business.”

Qualcomm expects the chip division’s revenue in the first quarter to be between US$6.2 billion (approximately Rs 46,050 crore) to US$6.8 billion (approximately Rs 5,500 crore), which is higher than the estimated US$5.71 billion (approximately Rs 42,400 crore) of FactSet. .

Qualcomm receives most of its profits from its licensing business, and the company said that the division’s revenue was US$1.51 billion (approximately Rs 112 crore), higher than FactSet’s estimate of US$1.3 billion (approximately Rs 97 crore) .

The company said it expects total revenue for the quarter to be between US$7.8 billion (approximately Rs 57,950 crore) and US$8.6 billion (approximately Rs 63,400 crore), while analysts’ expectations are US$7.15 billion (approximately Rs 53,100 crore). Lakhs). IBES data for Refinitiv.

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Mollenkopf told Reuters that the company expects overall 5G mobile phone shipments this calendar year to reach the company’s highest range of 175 million to 225 million mobile phones. The company also raised its forecast for 5G mobile phone shipments in 2021 to the midpoint of 500 million units.

He also said that Qualcomm has applied to the US government for a license to ship chips to Huawei, but has not yet received a response from US officials.


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