Modem manufacturer Qualcomm has stated that its sales grew by 62% year on year owing to the demand for the 5G chipset in the iPhone 12 series. After Apple spoke about its robust earnings from the sale of the iPhone 12 series, the modem chipset manufacturing company has also registered higher year on year growth in sales from these phones. In the last quarter, the company registered a 62% growth to $8.24 billion.
According to Wall Street Journal, the company’s net income was $2.46 billion in the last quarter. It must be noted that leading analysts were estimating the growth figures to be close to $2.09 billion. The final net income, therefore, is slightly higher. The sales were estimated to be $8.27 billion.
Steve Mollenkopf, the current CEO of Qualcomm who is to retire in June this year, stated that the chip business is growing at an exponential rate. The growth in content has almost been proportional to the growth in the number of devices. The evolution of technology has helped companies meet the expectations of the consumers and that has given a boost to the business as well.
It has been reported that Apple might be working towards developing its 5G modems for the upcoming iPhone series but Qualcomm states that the company will gain from the recent changes happening in the smartphone market.
Mollenkopf further stated that the fact that a major company like Huawei giving up on several of its shares has resulted in Qualcomm’s growth. According to him, the growth in the addressable market has made it easier for companies to have access to the kind of technology they need to move ahead in the game.
He also claimed that the demand for most products and services in the technology space has been higher than their supply in the recent past but things should get a little more stable in the next couple of months.
Cristiano Amon, the CEO at Qualcomm, admitted that the company is finding it difficult to meet the existing demands for the chips but that is a result of a global shortage of raw materials and not because of some inefficient measures taken by the company.
As of today, Qualcomm has been widely recognized as one of the biggest suppliers of the chipset to all the major smartphone manufacturing companies. It frequently ties up with companies like Samsung and TSMC for the manufacturing of chipsets.