Cancellations of product lines are usually not very good news. For Qualcomm (Nasdaq: QCOM), but that’s another matter. It is up sharply in Friday afternoon trading. This is all thanks to Apple (NASDAQ: AAPL) product line shutdown.
In the words of TF International Securities analyst Ming-Chi Kuo, Qualcomm won big thanks to Apple shutting down the upcoming iPhone SE. Kuo noted that thanks to the closure, Qualcomm will likely continue its role as Apple’s “exclusive supplier” of baseband chips for his upcoming iPhone 16. This is welcome news for Qualcomm. Some expected Apple to start cutting orders for Qualcomm chips next year. But now Apple’s own baseband his chip is proving to be less effective than Apple would have liked, putting Qualcomm in the catbird spot.
Qualcomm owning the Apple business would definitely give it an edge. But Qualcomm is also looking beyond Apple. For example, Qualcomm recently partnered with Iridium (Nasdaq: IRDM) provides satellite messaging services to Android devices. Additionally, Qualcomm is putting together several developments for the automotive market, including a full concept his car showcased at this year’s Consumer Electronics Show featuring these developments. Qualcomm CEO Cristiano Amon said:
Overall, analyst consensus calls Qualcomm a moderate buy.thanks to Qualcomm has an average price target of $147.33 per share, with an upside potential of 28.55%.