Qualcomm Shares Up 12% After Strong Outlook & Huawei Deal
Shares in component manufacturer, Qualcomm, have spiked over 12% in extended trading following a robust sales forecast for the current quarter, and a licensing deal with Chinese tech giant Huawei.
The company’s chips are deemed an integral component for the coming iteration of 5G phones, congruent with the continued roll-out of 5G networks globally.
For the quarter ending September, Qualcomm flagged revenues of US$5.5 billion – US$6.3 billion. Including back payments from Huawei, sales are forecast to notch US$7.3 billion – US$8.1 billion.
Smartphone makers are banking on 5G to trigger a new wave of upgrades, following broader smartphone unit shipment declines since 2016.
The news comes as Qualcomm continues to settle long-running disputes with global smartphone makers over the use of its components, reaching an agreement with Huawei this month.
Last year, the company settled a long-running saga with Apple over its 5G chips, prompting an exit from Intel in the 5G smartphone modem space.
Qualcomm has announced it has now signed up all major global smartphone manufacturers to license its patents.
Components are set to be featured within Apple’s first 5G iPhones, debuting later this year.
Qualcomm states a delayed launch of one “5G flagship phone” may prompt a “partial impact” on current period revenue.
Commentators speculate this may the 5G iPhone, which has been plagued with reports it’s launching later than Apple’s traditional unveiling.