Manufacturer Qualcomm says its sales increased 62% from 2019, the reason: the 5G modems that are embedded in the iPhone 12s, sold millions of copies above the company’s expectations.
If Apple had announced a few days ago that the results of the Cupertino company were more than satisfactory for the end of 2020, the domino effect continues until Qualcomm, which also presents record figures. Over the last quarter, Apple’s subcontractor has therefore experienced an increase of 62%, reaching $ 82 billion in turnover.
According to the Wall Street Journal, net income is $ 2.46 billion for this quarter, a figure well beyond even the most optimistic forecasts for the California company. Analysts did believe that Qualcomm’s turnover was going to be historic, passing the threshold of two billion dollars in net profit, but they undervalued the performance of the company at the end of 2020, by nearly $ 400 million.
Growth that should last
“The chip business is really growing like crazy”, said outgoing CEO Steve Mollenkopf. Qualcomm hopes to be the major player in this development, the company having signed a contract with Apple this summer. which stipulates that it will provide 5G modems to Apple until at least 2023.
But for its part, Apple intends to take its share of the pie. When the Cupertino company sees Qualcomm’s two billion net profit, the latter is necessarily interested in the processor market, and intends to become a player.
More broadly, Apple’s strategy in recent months appears to be a desire to regain control over the production of its computers, tablets and phones. After having broken off its partnership with Intel for its Macs, and having presented the MacBook Air, Pro and Mac mini M1 at the end of the year, with the success we know them. Apple would like to do the same with its iPhones by offering “home” modems, and thus not be at the mercy of a supplier like Qualcomm.
Meanwhile, the CEO of Qualcomm is happy, and the company’s backlog is more than full. “Demand far exceeds supply right now, which I think will be normalized in the coming quarters”, he added.