Qualcomm has been reversing the decline in product sales by obtaining patent license fees.
Editor’s note: This article comes from Tencent Technology , reviewing Jiao Ming.
If Bank of America ’s estimate is correct, taking into account the $ 4.7 billion in patent license fees Apple paid to Qualcomm before, Apple will pay Qualcomm $ 8.7 billion by 2022. This is more than four times the total value of Qualcomm’s current 5G contracts.
December 12, according to foreign media reports, a report from Bank of America stated that Qualcomm is expected to receive an additional $ 4 billion in revenue from Apple by the end of fiscal 2022.
Tal Liani, an analyst at Bank of America, noted that “Qualcomm will receive $ 4 billion in revenue from Apple over the next three years.” As 5G networks become more widespread in North America and Europe in the coming years, Qualcomm has invested heavily in research and development of modems that support next-generation cellular networks. The company predicts that by 2022, global 5G mobile phone shipments will exceed 750 million, and the Chinese market and demand for mid-range device users will drive shipments up.
To date, Qualcomm’s patent licensing agency, Qualcomm Technologies, has signed more than 75 5G contracts worldwide. These contracts will enable Qualcomm to receive revenues of $ 2.3 billion to $ 2.7 billion by June 2020. If Bank of America’s estimate is correct, taking into account the $ 4.7 billion patent license fee Apple paid to Qualcomm before, then Apple will pay a total of $ 8.7 billion to Qualcomm by 2022. This is more than four times the total value of Qualcomm’s current 5G contracts.
Qualcomm’s revenue has been fluctuating for the past three years, and the company has been reversing the decline in product sales by obtaining patent license fees. In fiscal 2017, fiscal 2018, and fiscal 2019, Qualcomm achieved revenues of $ 16.6 billion, $ 17.4 billion, and $ 14.6 billion by providing hardware components to smartphones and other device manufacturers, respectively. The company also reported a $ 2.8 billion reduction in equipment and services revenue in fiscal 2019.
Considering the promotion of 5G networks, Bank of America maintains Qualcomm’s target price at $ 100 per share. The company’sThe target share price is between $ 135 and $ 47, with a median of $ 100. Qualcomm will benefit from the increase in shipments of 5G equipment. The company has introduced 5G baseband on its flagship Snapdragon 800 and non-flagship Snapdragon 700 series chips, but it also plans to add 5G baseband to the next Snapdragon. 600 series chips.