Qualcomm CEO Braces for Loss of Apple Modem Business in 2024
March 3, 2023
Trending News 🌧️
Qualcomm ($NASDAQ:QCOM), Inc. is bracing for the potential loss of their primary modem supplier, Apple Inc., by 2024. Qualcomm CEO Cristiano Amon made a statement to investors that they expect that Apple will no longer be using their modems in the near future. This would be a major blow to Qualcomm’s revenue, as Apple currently provides a large portion of their modem business. The loss of a major chip business partner will put strain on the company’s bottom line and they are already making plans to mitigate any negative financial impacts this could have.
Qualcomm has been relying heavily on their partnership with Apple for the last several years, and losing them as a customer could mean lower profits for the coming quarters. Although Qualcomm CEO Amon believes that Apple will not be using their modems come 2024, he has also stated that the company will still continue working to develop more advanced and innovative modem technology for other customers. This could help make up for the potential loss of Apple, providing a much needed boost to their revenue in the future.
Share Price
On Thursday, QUALCOMM INCORPORATED stock opened at $122.2 and closed at $123.8, up by 0.1% from its previous closing price of 123.7. This slight increase reflects the company’s ability to handle potential losses in its modem business with Apple. The chief executive officer of the company, Steve Mollenkopf, braced for the potential loss of its modem business with Apple in 2024. This is due to the expiration of the multi-year patent license agreement between the two companies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Qualcomm Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 42.96k | 11.77k | 28.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Qualcomm Incorporated. More…
| Operations | Investing | Financing |
| 10.13k | -5.83k | -5.76k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Qualcomm Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 50.01k | 31.2k | 16.84 |
Key Ratios Snapshot
Some of the financial key ratios for Qualcomm Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.6% | 21.9% | 32.6% |
| FCF Margin | ROE | ROA |
| 18.8% | 47.6% | 17.5% |
Analysis
According to our Star Chart, QUALCOMM INCORPORATED is classified as a ‘gorilla’, which means that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Therefore, this makes it an attractive stock for investors who are looking for long-term growth. In addition, QUALCOMM INCORPORATED has a high health score of 9/10 which demonstrates its impressive financial strength. This means that it is capable of safely navigating any crisis without the fear of bankruptcy. Therefore, investors who are seeking stability and long-term capital appreciation should take a closer look at QUALCOMM INCORPORATED’s performance. More…
Peers
Qualcomm Inc is a leading American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. It has a wide range of competitors in the semiconductor and telecommunications industries, including Asix Electronics Corp Ltd, Skyworks Solutions Inc, Leaguer (Shenzhen) Microelectronics Corp.
– Asix Electronics Corp Ltd ($TPEX:3169)
Asix Electronics Corp Ltd is a leading technology company that designs and manufactures semiconductor integrated circuits. The company has a market cap of 5.77B as of 2022 and a Return on Equity of 21.21%. Asix Electronics is a leading innovator in the design and manufacture of semiconductor integrated circuits. The company’s products are used in a wide range of electronic devices, including computers, laptops, tablets, smartphones, and more. Asix Electronics is committed to providing the best possible products and services to its customers.
– Skyworks Solutions Inc ($NASDAQ:SWKS)
Skyworks Solutions Inc is a company that designs, manufactures and markets semiconductor products for use in radio frequency (RF) and mobile communications applications. The company has a market cap of 13.14B as of 2022 and a Return on Equity of 25.56%. Skyworks Solutions Inc’s products are used in a variety of applications including smartphones, tablets, laptops, data cards, WiFi, automotive, GPS, satellite radios, wearables and drones. The company’s products are also used in a variety of industrial, medical and military applications.
– Leaguer (Shenzhen) Microelectronics Corp ($SHSE:688589)
Shenzhen-based Leaguer (Shenzhen) Microelectronics Corp is a Chinese fabless semiconductor company. The company is engaged in the design, manufacture and sale of integrated circuits (ICs), including digital signal processing ICs, power management ICs, radio frequency ICs, mixed-signal ICs and other ICs. As of March 31, 2019, the company had a total of 1,754 employees.
Summary
QUALCOMM Incorporated, a leading technology company, is facing an anticipated loss of business from Apple in 2024. As a result, investors are advised to evaluate the company closely and weigh their risk before considering an investment. They have also made a number of strategic acquisitions and partnerships that allow them to remain competitive in the market.
In addition, QUALCOMM is financially strong with a healthy balance sheet and strong cash flow. Overall, QUALCOMM provides an attractive opportunity for investors with a long-term view and who have an understanding of the competitive technological landscape.
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