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Qualcomm-- Well-Positioned to Benefit From The Long-Term 5G Investment Cycle
With global smartphone demand recovering, supply constraints easing, and non-smartphone and higher-margin QCT revenue ramping, expect strong earnings through F2022 and beyond as 5G smartphones ramp, the mix of 5G grows benefiting Qualcomm with 50% greater content than a 4G smartphone, the RF business ramps, and strong trends in IoT and automotive augment overall revenue growth and expand margins. For QTL, Qualcomm now has all the major OEMs signed to long-term deals and over 150 5G licenses, and we anticipate steady growth trends for the higher margin business. QCT should enjoy increasing smartphone dollar content share with leading Android OEMs as 5G smartphone shipments ramp as evidenced by the strong Snapdragon 8 series design wins. Overall market share will increase due to Apple and new wins with Honor and other Android OEMs gaining share from Huawei. Qualcomm has a strong 5G leadership position that should not only result in strong share gains with leading smartphone OEMs, but also drive strong long-term growth in IoT, RF, and automotive.
With global smartphone demand recovering, supply constraints easing, and non-smartphone and higher-margin QCT revenue ramping, expect strong earnings through F2022 and beyond as 5G smartphones ramp, the mix of 5G grows benefiting Qualcomm with 50% greater content than a 4G smartphone, the RF business ramps, and strong trends in IoT and automotive augment overall revenue growth and expand margins. For QTL, Qualcomm now has all the major OEMs signed to long-term deals and over 150 5G licenses, and we anticipate steady growth trends for the higher margin business. QCT should enjoy increasing smartphone dollar content share with leading Android OEMs as 5G smartphone shipments ramp as evidenced by the strong Snapdragon 8 series design wins. Overall market share will increase due to Apple and new wins with Honor and other Android OEMs gaining share from Huawei. Qualcomm has a strong 5G leadership position that should not only result in strong share gains with leading smartphone OEMs, but also drive strong long-term growth in IoT, RF, and automotive.
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Barry Young
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