Qualcomm Inc (QCOM)

[TechWhiz]

Will Higher Chip Revenues Aid Qualcomm (QCOM) Q1 Earnings?

Zacks Equity Research
February 1, 2021, 8:28 AM

Qualcomm Incorporated QCOM is scheduled to report first-quarter fiscal 2021 results on Feb 3, after the closing bell. In the fiscal first quarter, it is likely to have recorded a stellar growth in revenues from the Qualcomm CDMA Technologies (“QCT”) segment owing to resumption of chip supply to China-based firms and wide proliferation of 5G-enabled devices.

Factors at Play

The QCT segment includes CDMA-based integrated circuit devices (chips) that are used mainly in smartphones, wireless data access cards and infrastructure equipment, and system software for wireless voice and data communications and GPS products.

During the fiscal first quarter, Qualcomm secured green signal from the Trump administration to restore supply of 4G chips to China-based Huawei Technologies, paving its way to provide some key raw materials for 4G mobile devices despite stringent U.S. trade restrictions. Notably, the company primarily used to supply chips for Huawei’s low-priced models as the China-based firm utilized indigenously developed chips for its flagship models. The resumption of chip supply is likely to have translated into incremental revenues for the company in the quarter under review.

In the fiscal first quarter, Qualcomm collaborated with Great Wall Motor Company Limited to provide the China-based automobile manufacturer with its much-acclaimed Snapdragon Ride Platform. The Snapdragon Ride Platform is equipped with high-end computer vision engines and Graphics Processing Unit that support multiple segments of autonomous driving. The company joined forces with DISH Network to assist it with the deployment of 5G network on the back of open and cloud-based solutions. It is likely to fast-track the commercialization of Virtualized RAN with the deployment of scalable 5G networks in the competitive North American market. Qualcomm also facilitated the deployment of 5G millimeter Wave network at South Korea’s Kumoh National Institute of Technology in collaboration with LG Uplus and LG Electronics. These initiatives, directed at bolstering the commercialization of 5G mmWave globally, are likely to have contributed to higher segment revenues in the to-be-reported quarter.

https://finance.yahoo.com/news/higher-chip-revenues-aid-qualcomm-132801723.html