Qualcomm takes full control of RFEE venture
Image: YouTube | Qualcomm

On Thursday, chipmaker Qualcomm presented its earnings report for the period ending September 29. Notably, the firm beat analyst expectations for both revenue and profit. Moreover, the corporation offered guidance for 2020 that the deployment of its fifth-generation mobile data technology will prompt a surge in smartphone sales.

Qualcomm’s FQ4 2019 results

In the fiscal fourth quarter, Qualcomm recorded $4.81 billion in revenue. As such, the firm outpaced Wall Street’s predictions of $4.71 billion. The San Diego-based corporation also increased its earnings from FQ2 2019 by 129 percent. However, its intake has slipped by 17 percent year-on-year.

The semiconductor maker has now experienced five consecutive quarters of declining revenue.

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On the bright side, Qualcomm’s fiscal fourth-quarter income beat analyst forecasts. The company brought in $506 million in net profits. It also posted adjusted earnings of $0.78 per share, compared to analyst predictions of $0.71 per share.

The chipmaker did bring in $2.1 billion, but a multibillion-dollar court settlement with Apple bolstered its third-quarter profits.

The Fourth Quarter and Beyond

In an interview with Bloomberg, Qualcomm CEO Steve Mollenkopf noted that his company expects a significant financial resurgence next year. The executive explained that his firm’s performance in the current quarter, and its FQ1 2020 forecast, indicate that 5G deployment will prompt a sales “inflection point.”

Qualcomm offered guidance of predicted first-quarter revenues between $4.4 billion and $5.2 billion. The firm’s renewed confidence comes from a sharp increase in 5G chipset licenses. Mollenkopf noted that 230 different 5G devices utilize its products, up from 150 three months ago.

Besides, the corporation forecasts global smartphone sales of 1.85 billion in 2020, an increase of eight percent from 2019. The firm also predicts shipments of 225 million 5G handsets next year.

The CEO touted the company’s renewed relationship with Apple is a reason for its optimistic outlook. To end its longstanding litigation with Qualcomm, Apple agreed to a six-year licensing agreement with the chipmaker. However, because of the deal’s timing, the iPhone 11 uses Intel modems.

Notably, Intel announced in April it had ceased developing components compliant with fifth-generation networks. Accordingly, Apple will almost certainly depend on Qualcomm for its 5G chipsets moving forward. As the device maker reportedly plans to ship at least 80 million 5G iPhones next year, the semiconductor firm should see a healthy improvement in its annual revenue.

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