Apple supplier Qualcomm forecast first-quarter revenue above Wall Street estimates on Wednesday, as it ramps up chip sales for Apple Inc’s 5G iPhone 12 family.
Qualcomm, which makes the bulk of profits from its licensing business, said revenue from the unit was $1.51 billion (£1.16 billion), above FactSet estimates of $1.30 billion.
Qualcomm this year returned to being a major supplier for Apple, supplying chips that help the new iPhone 12 models connect to high-speed 5G networks.
The company said it expects current-quarter revenue of between $7.8 billion and $8.6 billion, compared with analysts’ estimates of $7.15 billion, according to IBES data from Refinitiv. Revenue from the company’s chip segment, its largest by sales, was $4.97 billion, compared with FactSet estimates of $4.59 billion. It expects revenue in the range of $6.2 billion to $6.8 billion for the unit during the first quarter, ahead of FactSet estimates of $5.71 billion.
Apple has not provided a specific forecast figure for its crucial holiday shopping quarter, making Qualcomm’s sales forecast for the chip unit a proxy to gauge demand for new iPhones.
MacDailyNews Take: These new Qualcomm forecasts certainly bode well for Apple and iPhone!