We’re moving on from Apple

👆… 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.

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