Qualcomm Revenue Hits $8.3 Billion Due To iPhone 12 Release
Software giant Qualcomm, which provides the 5G chips for Apple’s iPhone 12, earned $8.3 billion in the fourth quarter of 2020, up by 73% from the same time last year.
Qualcomm’s strong performance is largely credited to the release of the iPhone 12 models, as well as the success of other smartphones using the company’s 5G chip.
As reported by The Wall Street Journal, Qualcomm CEO Steve Mollenkopf says “some” of the earnings in the Q4 report reflected iPhone sales, however claims the next quarter will see even more growth.
“Our investments in 5G are coming to fruition and showing benefits in our licensing and product business,” he said.
Qualcomm’s earnings were also bolstered by a one-time payment of $1.8 billion from Chinese-owned Huawei over a patent dispute.
Apple and Qualcomm last year also settled a legal dispute over licensing fees after the iPhone maker found it could not use Intel chips for 5G-connected smartphones.
The two companies signed a multi-year licensing deal and all four of the iPhone 12 models are built with Qualcomm’s 5G chips.
According to MacRumors, Apple plans to use Qualcomm’s chips through to 2023, however the tech giant is developing its own in-house chips – the Apple silicon chip – which could see them switch in the future.