Qualcomm says chip business 'growing like crazy' thanks to 5G iPhone

5g Iphone
5g Iphone (Image credit: Apple)

What you need to know

  • Qualcomm says that demand for chips is "growing like crazy" as the iPhone 12 helped propel it to a 62% rise in sales year on year.

Qualcomm has reported a 62% rise in sales year-on-year driven in part by demand for 5G and the iPhone 12.

From The Wall Street Journal:

Qualcomm Inc. parlayed the global 5G rollout and Apple Inc.'s inclusion of its chips in the latest iPhone models into an earnings jump that failed to satisfy investors betting phone-chip sales would be even higher.The mobile-phone chip maker on Wednesday said its quarterly sales rose 62% from the year-ago period to $8.24 billion. Net income for the first quarter of the company's financial year more than doubled to $2.46 billion.The company narrowly missed Wall Street's sales expectations of $8.27 billion, but beat the bottom line protection of net income of $2.09 billion, according to analysts surveyed by FactSet.Sales of chips for phones came in slightly below investor expectations that had been supercharged by Apple's strong earnings a week ago. Qualcomm's stock fell more than 8% in after-hours trading.

As the report notes, these results are actually a bit of a disappointment, and shares fell after hours as Qualcomm failed to rise to investor's expectations.

Last week Apple reported record holiday quarter revenue of $111.4 billion, including iPhone sales of $65.6 billion, up massively on the previous year. From the announcement:

Apple® today announced financial results for its fiscal 2021 first quarter ended December 26, 2020. The Company posted all-time record revenue of $111.4 billion, up 21 percent year over year, and quarterly earnings per diluted share of $1.68, up 35 percent. International sales accounted for 64 percent of the quarter's revenue.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9