It was an open secret. Now, it's a shouting truth. Qualcomm has celebrated its tax revenue conference from the fourth quarter of 2019 and its CEO, Steve Mollenkopf, has talked about Apple.
The chip maker has also offered a small forecast of what they expect during the beginning of 2020. The figures seem to be high, especially with the expansion of the 5G connectivity.
According to Reuters, Qualcomm's licensing division has been the most lucrative for the firm. In that sector, Qualcomm expects to generate revenue between 1,300 and 1,500 million during the first quarter of 2020.
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Steve Mollenkopf, talking about Apple
Apple and Qualcomm have engaged in a legal battle during the last months that ended with an agreement between both companies stipulating that Apple must pay a fine in the form of payments for 6 years. And part of this agreement also includes that both companies will partner for the manufacture of hardware components for iPhone. Something that benefits both parties (and consumers), in our humble opinion.
Steve Mollenkopf talked about Apple as:
“We continue to see a lot of strength in the licensing business, particularly after having included the agreement we have signed with Apple this year, and we are at the gates of the 5G transition, which will have a great impact on the business of our product. "
The iPhone 11 line did not incorporate Qualcomm chips, but everything seems to indicate that Apple will implement 5G connectivity chips in its future 2020 iPhone. In addition, Steve Mollenkopf told Reuters that Qualcomm will continue to invest in 5G and that it has secured agreements to “supply to 230 devices ”5G chip designs.
We will keep an eye on all the news regarding this issue, but the words of the CEO of Qualcomm are more than clear, Apple begins its transition to 5G.