Qualcomm says chip business ‘growing like crazy’ thanks to 5G iPhone

Qualcomm made $8.24 billion in sales this year.

What you need to know

  • Qualcomm says that demand for chips is “growing like crazy” as the iPhone 12 helped propel it to a 62% rise in sales year on year.

Qualcomm has reported a 62% rise in sales year-on-year driven in part by demand for 5G and the iPhone 12.

From The Wall Street Journal:

Qualcomm Inc. parlayed the global 5G rollout and Apple Inc.’s inclusion of its chips in the latest iPhone models into an earnings jump that failed to satisfy investors betting phone-chip sales would be even higher.

The mobile-phone chip maker on Wednesday said its quarterly sales rose 62% from the year-ago period to $8.24 billion. Net income for the first quarter of the company’s financial year more than doubled to $2.46 billion.

The company narrowly missed Wall Street’s sales expectations of $8.27 billion, but beat the bottom line protection of net income of $2.09 billion, according to analysts surveyed by FactSet.

Sales of chips for phones came in slightly below investor expectations that had been supercharged by Apple’s strong earnings a week ago. Qualcomm’s stock fell more than 8% in after-hours trading.

As the report notes, these results are actually a bit of a disappointment, and shares fell after hours as Qualcomm failed to rise to investor’s expectations.

Last week Apple reported record holiday quarter revenue of $111.4 billion, including iPhone sales of $65.6 billion, up massively on the previous year. From the announcement:

Apple® today announced financial results for its fiscal 2021 first quarter ended December 26, 2020. The Company posted all-time record revenue of $111.4 billion, up 21 percent year over year, and quarterly earnings per diluted share of $1.68, up 35 percent. International sales accounted for 64 percent of the quarter’s revenue.

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