Qualcomm jumps as analyst calls it 'biggest winner' from Apple canceling iPhone SE - Seeking Alpha

Justin Sullivan

Qualcomm (NASDAQ:QCOM) shares jumped astir 4% connected Friday - amid a emergence successful the broader marketplace - arsenic an influential expert called the San Diego-based spot steadfast the "biggest winner" of Apple (NASDAQ:AAPL) reportedly canceling the adjacent mentation of the iPhone SE.

TF International Securities expert Ming-Chi Kuo said connected Friday that Qualcomm (QCOM) would apt enactment the "exclusive supplier" of baseband chips for the iPhone 16 series, owed successful 2024, compared to expectations that it would commencement to suffer orders from Apple (AAPL) adjacent year.

"Due to concerns that the show of the in-house baseband spot whitethorn not beryllium up to par with Qualcomm’s, Apple initially planned to motorboat its baseband spot successful 2024 and fto the low-end iPhone SE 4 follow it first, and determine whether to fto the iPhone 16 usage its baseband spot depending connected the improvement presumption of iPhone SE 4," Kuo wrote successful a blog post.

"However, the cancelation of the iPhone SE 4 has importantly accrued the chances of Qualcomm remaining the exclusive supplier of baseband chips for the 2H24 caller iPhone 16 series, which is amended than the marketplace statement that Qualcomm volition commencement losing iPhone orders successful 2024," Kuo added.

Last month, Kuo suggested that Apple (AAPL) had canceled the iPhone SE 4 due to the fact that of anemic demand.

There were expectations that Apple (AAPL) would present its ain 5G chips adjacent year.

Kuo besides noted that Qualcomm (QCOM) is apt to proceed to predominate the high-end vigor frequence marketplace for mobile phones this twelvemonth and next, resulting successful "markedly higher profits" than its competition.

The expert besides noted Qualcomm's (QCOM) merchandise premix should assistance mitigate the antagonistic impacts of a imaginable recession and fto it instrumentality to "solid growth" upon recovery.

On Thursday, Qualcomm (QCOM) unveiled Snapdragon Satellite, a satellite-based two-way susceptible messaging solution for high-end Android phones.