Shares of Qualcomm (QCOM) - Get Report and other other Apple (AAPL) - Get Report suppliers were dropping Monday after a media report said Apple's 5G baseband chip could be used in the iPhone as soon as 2023.
AppleInsider cited TF International Securities analyst Ming-Chi Kuo in making its prediction. Kuo sees Qualcomm having to change its strategy to combat order losses from Apple.
“As Android (GOOGL) - Get Report sales in the high-end 5G phone market are sluggish, Qualcomm will be forced to compete for more orders in the low-end market to compensate for Apple’s order loss,” Kuo said, according to AppleInsider.
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Meanwhile, Bloomberg Intelligence analyst Anand Srinivasan said that while Apple's reported 5G chip progress hurts sales for Qualcomm's chip-technology segment, it will not hurt its royalty revenue.
Qualcomm shares at last check dropped 4.7% to $131.32.
Other chipmakers were also weaker Monday with Nvidia (NVDA) - Get Report falling 2.%9, Advanced Micro Devices (AMD) - Get Report off 2.6%, Broadcom (AVGO) - Get Report down 2.1% and Micron Technology (MU) - Get Report giving up 5.2%.
Two weeks ago, Qualcomm reported fiscal-second-quarter results that topped estimates.
The San Diego chipmaker reported earnings of $1.90 a share as revenue rose 52% from a year earlier to $7.93 billion.
Analysts were expecting earnings of $1.67 a share on revenue of $7.62 billion, according to FactSet.
The figures were "driven by sustained demand for smartphones globally and our ability to increase the scale of our non-handset revenues,” Chief Executive Steve Mollenkopf had said in a statement.
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The Link LonkMay 11, 2021 at 12:06AM
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Qualcomm Drops on Report Apple Will Use Own Chips by 2023 - TheStreet
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