Apple Might Have Failed to Develop 5G Chips For Its Phones

Apple might have failed to develop 5G chips

Apple had planned to replace Qualcomm’s 5G modem chips with its own for its iPhones. However, according to a prominent Apple stock analyst, the company appears to have hit a developmental snag. Additionally, Qualcomm saw a rise in its stock recently. 

Furthermore, analyst Ming-Chi Kuo also stated that Apple seems to have “failed” in its internal development of a 5G chip. Besides, previously, Qualcomm estimated that it would be supplying just 20% of chips to Apple in late 2023. But, Kuo believes that Qualcomm might remain iPhone’s exclusive supplier for 5G modem chips through the second half of 2023. Therefore, it will likely boost Qualcomm’s revenue and earnings for 2023 and early 2024. Unfortunately, there has been no word from the Cupertino tech giant regarding this news. 

Apple might have failed to develop 5G chips

Moreover, Kuo thinks Apple will “continue” to develop its own 5G chips and succeed. However, he says that Qualcomm’s other new businesses would have grown sufficiently by that time. Besides, Qualcomm plans to shift from developing wireless chips primarily for smartphones to developing them for other devices for the Internet of Things. For instance, it intends to make wireless chips for automobiles, arm-based PCs, and virtual and augmented reality headsets. And that will balance any negative impact it would face from Apple’s order loss of 5G chips. 

Qualcomm stock

On another note, Qualcomm stock rose 3.5%, closing at 131.60 on June 28, which was an overall down day for stocks. On the other hand, Apple stock plummeted 3% to 137.44 on the same day. 

In IBD’s fabless semiconductor industry group, Qualcomm stock ranks fifth out of 33 stocks. In addition, Qualcomm stock has an IBD Composite Rating of 72 out of 99. The Rating combines five separate proprietary ratings into one, giving an overall score for the stock. And the best growth stocks have a Composite Rating of 90 or more. So, Qualcomm stock seems closer to belonging to the “best” one. 

Awanish Kumar

By awanish

I keep abreast of the latest technological developments to bring you unfiltered information about gadgets.

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