Qualcomm, known for its tech inside smartphones, is expanding into generative AI with new in-vehicle capabilities and partnerships, aiming to run AI models locally rather than relying on the cloud, positioning itself as a key player in the AI space; uncertainty about its relationship with Apple and the industrywide downturn in smartphone shipments have driven Qualcomm's push to diversify its business.
Qualcomm will supply chips for in-car infotainment systems to luxury automakers Mercedes and BMW, as the U.S. semiconductor company expands its presence in the automotive sector.
Apple plans to use its own modem chip for iPhones starting in 2025, reducing its reliance on Qualcomm, but it's unclear if there will be any consumer benefits over Qualcomm modems.
Apple's iPhone sales in China surpassed the United States in the second quarter of 2023, becoming the largest market for iPhone shipments, while Qualcomm announced that it will continue to supply Apple with 5G modems through 2026.
The upcoming iPhone 15 Pro and iPhone 15 Pro Max will offer major improvements to 5G performance, with up to 24% faster speeds than the iPhone 14 Pro lineup, thanks to their new Qualcomm X70 modem.
Qualcomm's recent agreement with Apple, strong progress in its automotive segment, and positive financial results have led to the maintenance of a buy rating, as the company remains in excellent shape and is well-positioned for long-term growth in the smartphone, IoT chip, and advanced automotive semiconductor markets.
Qualcomm is entering the Wi-Fi router market, with Charter Communications and UK's EE as its first customers, providing gateways that transform fiber-optic lines into Wi-Fi signals and prioritize traffic from specific apps and services for faster speeds.
Apple's attempts to design its own modem chip to replace Qualcomm radio chips in iPhones have been deemed a failure due to issues with speed, overheating, and size, leading to doubts about the company's ability to use its own modem chip in future iPhone models.
Apple is expected to achieve year-over-year growth in Q4 thanks to better than expected iPhone revenue and profit, with the iPhone 15 Pro Max and iPhone 15 Plus performing well, while the standard iPhone 15 and iPhone 15 Pro may face order cuts if their prices are not reduced, according to Ming-Chi Kuo's analysis based on supply chain sources.
Apple plans to release new MacBooks and iPads with 3nm chips in 2024, but demand for the devices might be "below expectations" due to a "lack of growth drivers," according to research shared today by supply chain analyst Ming-Chi Kuo.
Qualcomm's agreement to continue selling modems to Apple puts a pause on the doom narrative surrounding Qualcomm's largest customer loss, and it suggests that Apple may not have its own modem until the 2027 iPhone at the earliest.
