“The end to a battle between Apple Inc. and Qualcomm Inc. removed a hangover for shareholders,” Kamaron Leach writes for Bloomberg News. “While the news led to some positive read-through for the industry, some companies may not be as fortunate.”
“The revival of Qualcomm’s relationship with Apple eventually swayed Intel’s management to hang up its efforts to dominate the 5G smartphone modem business,” Leach writes. “The decision lifted Intel shares to their highest levels since 2000 as analysts such as Cowen’s Matthew Ramsay saw the move as ‘an operational sigh of relief.’ Still, Cowen views the absence of about $3.5 billion revenue from the smartphone modem unit — despite its comparatively narrow gross margins — as a negative for the chipmaker.”
Leach writes, “Morgan Stanley’s James Faucette views the tie-up as a positive for Qorvo Inc. and Broadcom Inc. — particularly if the truce ‘“puts Apple in a better place for a 5G iPhone release in 2020.'”
Read more in the full article here.
MacDailyNews Take: The biggest winners will be iPhone (and iPad) owners who’ll have the best 5G modems, un-throttled!
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