Qualcomm President and CEO Cristiano Amon talks about Qualcomm technology for automakers at a press conference during CES 2022 in Las Vegas, Nevada, January 4, 2022.
Steve Marcus | Reuters
Qualcomm Shares jumped more than 3% on Tuesday after a prominent analyst said Apple will likely use the company’s 5G modem for the 2023 iPhones instead of relying on technology built into the house.
“My latest survey indicates that Apple’s development of 5G modem chips for iPhones may have failed, so Qualcomm will remain the exclusive supplier of 5G chips for new iPhones in the second half of 2023, with 100% supply market share (compared to the company’s previous estimate of 20%),” Ming-Chi Kuo, an analyst at TF International Securities, wrote in a tweet.
While the iPhone 13 and other recent Apple smartphones use Qualcomm’s X60 modem to connect to 4G and 5G networks, Apple has been making moves in the wireless connectivity market. In 2019, the company bought Intel’s modem business, leading to speculation that it is growing and plans to use internal parts as soon as next year.
Kuo, who is known for covering parts of Apple’s supply chain and making accurate predictions about suppliers before products are announced, said he expects Apple to continue to grow. 5G chips.
Qualcomm is currently in the process of diversifying its chip business away from primarily handheld devices and into new markets including car semiconductors and low-power applications.
Qualcomm has previously said that it expects to deliver 20% of iPhone modems by 2023 as part of an upbeat financial forecast, hinting to investors that the chipmaker doesn’t need the business. of Apple to develop.
Apple and Qualcomm have long been partners, but the relationship is also controversial. The companies have faced courts around the world over Qualcomm’s licensing fees and how they sell their chips. Apple sued Qualcomm for $1 billion in the US before the two companies signed a settlement in 2019 that included a six-year patent-licensing agreement and an agreement to use Qualcomm parts.
The chipset deal indicates that Qualcomm will supply some, but not all, 5G modems for iPhones to Apple through 2024, according to a work statement published as part of court documents.
An Apple representative declined to comment. A Qualcomm representative did not immediately respond to a request for comment.
Even with Tuesday’s rally, Qualcomm stock is still down more than 29% this year, falling along with the rest of the tech market.
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