Vertical Divider
Qualcomm Benefitting from Strong 5G Smartphone Growth
Qualcomm posted very strong Q420 (FY) results with revenue of $6.5B. The revenue upside was primarily driven by recovering macro trends with the smartphone market declining only 5%. Qualcomm is well-positioned to benefit from the long-term 5G investment cycle and anticipate 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, Qualcomm now has all the major OEMs signed to long-term licenses following the announced long-term licensing deal reached with Huawei. With recent long-term deals signed with leading OEMs, QTL now has over 110 5G licenses, and should grow its licensing business that benefits from 5G smartphone growth trends. Despite the total handset market headwinds due to COVID-19, 5G network and device launches remain on track globally, and management maintained its outlook for 5G handset shipments of 175M to 225M for CY2020. For CY2021 management anticipates roughly 500M 5G devices, and it could exceed 750M in C2022.
Qualcomm posted very strong Q420 (FY) results with revenue of $6.5B. The revenue upside was primarily driven by recovering macro trends with the smartphone market declining only 5%. Qualcomm is well-positioned to benefit from the long-term 5G investment cycle and anticipate 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, Qualcomm now has all the major OEMs signed to long-term licenses following the announced long-term licensing deal reached with Huawei. With recent long-term deals signed with leading OEMs, QTL now has over 110 5G licenses, and should grow its licensing business that benefits from 5G smartphone growth trends. Despite the total handset market headwinds due to COVID-19, 5G network and device launches remain on track globally, and management maintained its outlook for 5G handset shipments of 175M to 225M for CY2020. For CY2021 management anticipates roughly 500M 5G devices, and it could exceed 750M in C2022.
|
Contact Us
|
Barry Young
|