Qualcomm Sees Strong Q4 Earnings Thanks to 5G iPhone 12

Qualcomm reported revenue of $ 8.3 billion in the fourth quarter of 2020, according to its earnings report today. It’s up 73 percent from the fourth quarter of 2019, due to Qualcomm’s strong performance, which has led to the use of the iPhone 12 and 5G chips for other smartphones on the market.

As reported The Wall Street JournalSteve Molenkoff, CEO of Qualcomm, said some Q4 earnings reports reflect iPhone sales, but earnings will be more significant in the coming quarter. “Our investment in 5G is thriving and demonstrates the benefits of our licensing and manufacturing businesses,” Molenkoff said.

Qualcomm received a one-time payment of $ 1.8 billion from Huawei, but without that revenue, Qualcomm’s sales have grown by 35% year-on-year.

Apple and Qualcomm settled a fierce legal battle over licensing fees after it became clear that Apple could not trust Intel chips for its 5G iPhone. Apple and Qualcomm have signed a multi-year license agreement and all iPhone 12 models will have Qualcomm 5G modems.

Going forward, Apple plans to use Qualcomm chips in the coming years. Apple recently suggested a roadmap that the company plans to rely on Qualcomm’s X60, X65 and X70 chips, at least by 2023. However, Apple is developing its own modem at Chips Home, which may at some point switch to its own technology.

Apple bought more than $ 1 billion from Intel’s smartphone modem business in 2019, giving Apple new wireless technology patents and specialized ise knowledge of modem development to engineers. Intel’s former chip team has joined Apple’s cellular technology team, and at the time, Apple chip chief Johnny Sroozy said the acquisition would enable Apple to accelerate future product development.