Apple risked falling behind in 5G race

Broadcom (AVGO) is a leading supplier of smartphone components. Its range of products to the smartphone market include radio frequency chips, wireless charging chips, and Wi-Fi/Bluetooth connectivity chips. Apple is one of Broadcom’s top customers. In its latest annual filing, Broadcom disclosed that sales to Apple contributed 25% of its total revenue in its fiscal 2018, which was up from 20% in fiscal 2017.

Where Does Apple-Qualcomm Truce Leave Broadcom?

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Apple and Qualcomm (QCOM) this month reached a settlement that put an end to their nearly two-year legal dispute. For Qualcomm, the dispute cost it a revenue loss as Apple replaced it with Intel (INTC) as a supplier of modem chips for iPhones. For Apple, the dispute threatened to slow down its product roadmap, as Intel was not going to have its 5G smartphone modem chips ready before 2020. That meant that Apple could only begin shipping 5G iPhones in 2021 at the earliest, thereby falling behind some of its major rivals. For example, Samsung’s (SSNLF) first 5G smartphone, the Galaxy S10 5G, which uses Qualcomm chips, is expected to be released in the United States next month.

Broadcom’s orders from Apple could rise

If the Apple-Qualcomm settlement helps Apple to speed up the release of 5G the iPhone (since it can now use Qualcomm’s 5G modem chips), Broadcom could benefit from increased demand for its smartphone components from Apple without waiting for too long.

Apple releasing a 5G-capable iPhone to the market quickly could also help the company avoid falling too far behind the competition, ensuring that one of Broadcom’s most important customers keeps its competitive advantages.

Broadcom generated revenue of $5.8 billion in its first quarter, which ended in December, representing an increase of 9.0% YoY. Revenue dropped around 1.6% YoY at Qorvo (QRVO) in the quarter ended in December.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.