Qualcomm Moderated Thread - please read rules before posting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 173.02

-1.8%

2:02 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

To: kech who wrote (183127)

11/3/2023 11:34:09 AM

From: Jim Mullens

6 Recommendations Read Replies (1) of 196977

Ketch, re: 20% iPhone share 2026

Can anyone explain the "20% share at apple for 24-26". Does this mean only high end phones at apple are using qualcomm modem? Only US phones?" Are rest using on house apple modem despite its problems?

>>>>>>>>>>>>>

I think Engineer’s post about a year ago explains the 20% as an insurance policy. AAPL pays QCOM an equivalent of 20% of the annual modem sales as a guarantee to APPL that QCOM will be a backstop to supply modems if Apple fails to deliver an acceptable working product.

AAPL first indicated they would make their own modems December 2020

QCOM first indicated for planning purpose they would have 20% share of the iPhone launched in 2023 in Nov 2021 .

APPL will now have failed to deliver thru 2025 as the modem contract has been extended thru the 2025 launch at 100%, with 2026 now at 20% for planning purposes.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>

To: peaceforme who wrote (175962)

From: engineer

it is cheap insurance for Apple to keep booking the 20% guarantee in return for Qualcomm to make them a backup chipset. This way they can have it both ways. They will choose some country to sell this 20% as a differntiated model.

However I will bet you that the agreement for the 20% has an option for Apple to change to any number up to 100% at some time prior to the next year model launch. My guess is that would be like 5-6 months before the product launch as a firm committ, and probably like 7 months as a preliminary commitment to book wafers. Normal production thrughput for these chips is like 16-20 weeks.

This way Apple can keep pushing up to the last minute on their own modem, and yet have full fall back for the qcoM modem if needed.

IMHO, I will say it again. I do not think that Apple will get there in 2023.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next