World’s most valuable smartphone maker Apple Inc. has also incorporated 5G technology in its latest iPhone models. The next-generation wireless network will offer speed 100 times faster than 4G.
How Qualcomm could benefit from Apple?
Apple’s first 5G supported iPhone will include Qualcomm’s chip. Apple is expected to ship 200 million units of its 5G-enabled smartphone this year, and up to 500 million units next year, according to a report published earlier this month.
The strong sales forecast for Apple devices will boost chip revenue of Qualcomm, with iPhone shipments expected to increase more than two folds next year.
Apple has already indicated that it plans to use Qualcomm chips in iPhone at least for the next few years, citing improved performance and connectivity they offer.
Recent 5G Developments
Elisa’s flagship store in Finland was selected to showcase the record speed. The latest development will support several high-bandwidth and low-latency services including high-speed downloads, enhanced performance of virtual reality (VR) applications.
Nokia used its 5G mmWave technology with Qualcomm’s 5G smartphone over a commercial 5G network operated by Elisa to achieve the latest benchmark. Industries will now be able to remotely control gadgets and devices seamlessly in real-time. The companies expect to roll out the service next year.
5G partnership with Dish Network Corp
Dish is using a new technology named Open Radio Access Network (RAN) to build its network across the U.S. RAN uses software instead of physical equipment to manage network functions over the cloud. Dish, with the help of network vendors, plans to use the 5G RAN platforms of Qualcomm.
U.S. tech companies such as Qualcomm, Cisco, and Intel are competing with each other to boost their presence in the telecom equipment market.
Qualcomm vs Huawei
China-based Huawei Technologies is currently leading the wireless communication patents race. The Chinese technology giant filed 8,607 wireless patents during the ten months ended October 2020, surpassing the U.S-based Qualcomm, which filed for 5,807 patents during the same period.
The United States and China currently dominate the global wireless patent market, as the two countries account for nearly 65 percent of the total patents on a combined basis, followed by Japan and South Korea with 15 percent and 7 percent, respectively.
Qualcomm was a key supplier for Huawei until U.S. authorities last year imposed a ban on U.S-based semiconductor companies that restricted them from supplying chips to Huawei. One of the main reasons behind the ban was increasing trade-conflict between the two biggest economies of the world.
However, the U.S. government made an exception for Qualcomm
Few other companies, such as AMD, also received permission to supply to Huawei.
Experts believe the latest permission would have a limited impact on Qualcomm’s overall sales, as it can only sell 4G chips while most of the customers around the world plan to shift to the latest 5G devices. Looking forward, it is still unclear if U.S. authorities will permit the company for selling 5G mobile chips to Huawei.
Financial progress of Qualcomm
Like many other industry rivals, Qualcomm
Revenue at Qualcomm Technology Licensing (QTL) segment jumped 30 percent to $1.51 billion on a year-over-year basis. QTL makes money by collecting the licensing fee from other tech firms due to the several telecommunication patents it owns.
The company also offered financial guidance for its fiscal first quarter. It projected adjusted earnings in the range of $1.95 per share to $2.15 per share for the quarter, and revenue between $7.8 billion and $8.6 billion.
Most research firms are bullish on Qualcomm