HomeTRENDING NEWSThanks To 5G And The Mobile Phone Boom: Qualcomm Is Booming Profits

Thanks To 5G And The Mobile Phone Boom: Qualcomm Is Booming Profits

The US manufacturer Qualcomm, which specializes in smartphone chips, closed its second financial quarter above analysts’ expectations. The future outlook is also bright.

In the three months that ended on March 28, the US chip company Qualcomm increased its sales by 52 percent to 7.93 billion US dollars. Net income more than tripled to just under $ 1.76 billion ($ 1.53 per share). With these results, Qualcomm was well above analysts’ expectations.

Smartphone sales rise, Qualcomm benefits.

The reason for the positive quarterly figures is, on the one hand, the booming cell phone sector after the corona-related slump in the same quarter of the previous year. In the past first quarter, the number of smartphones sold worldwide rose by 27 percent to 347.4 million. Qualcomm chips and (5G) cellular modems can be found in many smartphones. In addition to hardware sales, the group also earns from corresponding licenses.

The licensing business brought in 1.61 billion dollars (plus 51 percent) in sales and was well above the analysts’ expectations. The turnover from the mobile phone sector to 4.07 billion dollars (plus 53 percent), but missed the forecasts by around 150 million dollars. Total sales in the QCT segment, which includes the mobile phone business and the automotive and Internet of Things sectors, climbed 53 percent to $ 6.28 billion.

For the current third fiscal quarter, Qualcomm expects a further strong increase in smartphone sales. Earnings are said to be between $ 1.55 and $ 1.75 per share. In terms of sales, the group expects $ 7.1 to 7.9 billion. In both areas, analysts are far less positive, as CNBC writes. Qualcomm rates the current supply crisis in the chip sector as less of a threat. The situation will ease towards the end of the year.

Qualcomm pays a $ 0.65 dividend.

The shareholders are less enthusiastic. The Qualcomm share had risen by around six percent after the trading hours. On Thursday, however, the plus shrank to 3.6 percent. The stock is trading at a good $ 140.Since the beginning of the year, Qualcomm posted a minus of ten percent in the share price. The S&P 500 index, on the other hand, has increased by twelve percent since the beginning of January. After all, the company paid its investors $ 0.65 per share in the past three months.

Also Read : Vivo X60 Pro 5G: New Top Smartphone With Gimbal Camera And Zeiss Optics

Tech Gloss
Tech Gloss is a site dedicated to publishing content on technology, business news, Gadget reviews, Marketing events, and the apps we use in our daily life. It's a great website that publishes genuine content with great passion and tenacity.