👆… said by Qualcomm after losing Apple as a big customer. This has pushed its share price to a historic high instead.
Hummm, what happened to Qualcomm?
Who is Qualcomm? It’s an American gigantic chip-maker – currently the 2nd biggest in the world with 24% of market share. It’s best known for the flagship Snapdragon chips that take up a large part of high-end Android phones globally.
Not only Android, Qualcomm also supplies modem chips to Apple – the chip that connects our iPhone to mobile carriers. In 2020, 11% of its revenue came from Apple.
- We probably don’t need you 😥 But last year, Apple said it would make its own chips, eventually looking to replace Qualcomm’s supply.
- Qualcomm expects the revenue contribution from Apple will fall to a very small part ultimately.
We’ll be 🆗 However, Qualcomm didn’t seem too worried. It gave a strong earnings forecast, telling investors that it can still grow without Apple.
Grow without Apple 🍎? How?
By focusing on other businesses instead. Qualcomm will go beyond smartphone chips, and is very confident about its future growth – mainly from the following.
- How about cars? 🚗 Revenue from car chips could go up 250% in 5 years… It just signed a deal with BMW to supply chips for future self-driving cars.
- Internet-of-things is another big one… Qualcomm expects the segment could grow 80% by 2024, mostly from virtual reality headsets.
I am happy to learn that 📈 Qualcomm stock rose nearly 8% on Tuesday and is now at a record high… as this answer dispelled investors’ concerns.