As it diversifies, Qualcomm can grow without Apple, analysts say

As it diversifies, Qualcomm can grow without Apple, analysts say ...

- Investors once thought that Qualcomm Inc's (QCOM.O) fortunes rose and fell with the Apple device Apple's (AAPL.O) that uses a key "modem" chip from the San Diego company to connect to mobile data networks.

As far as Qualcomm prepares for an investor presentation on Tuesday, the company will outline plans and specifications for its chips. It will also provide technology to the mobile phone to the physical and virtual reality console and the auto-driving machines and the telecoms gear, analysts said that the potential loss of Apple, who will take a turn of the world in an effort to make a big profit for Qualcomm.

Among all the revenues in progress, the worry of Apple moving away is much smaller, says an Bernstein analyst.

The change comes from a diversification strategy implemented recently by Cristiano Amon, who, prior to becoming chief executive of the company's chip division, was on the basis of a diversification strategy.

Earlier this month, Qualcomm said it expects adjusted earnings to increase by more than 20% in fiscal 2022, where Wall Street had just forecasts for 2022 but that has only grown almost 19% since Qualcomm gave its forecast.

"Once more than our contract with apple is an upside to our model," Amon said during the earnings call Nov. 3. "They have a large number of devices. If they have opportunities, we'll very happy to have a phone call to deal with them on supply."

An analyst said it's in between when not if Apple leaves.

In other words, Angelo Zino said that Apple will likely leave in two phases and bring only one or two chips in one or two of the products initially.

Qualcomm is selling Android devices. The Qualcomm company is filling the vacuum which is left from Huawei's exit from the smartphone market. China's Honor rely on the US chips company to supply.

"Qualcomm's China handset (revenue) grows faster than Apple grows, which is helping to offset Apple reductions", said Patrick Moorhead, founder of Moor Insights & Strategy.

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