In a strange turn of events, Qualcomm (NASDAQ:QCOM) managed to notch up slightly in Wednesday’s trading despite what may be a big loss of business. Turns out, Qualcomm expects that it won’t be supplying Apple (NASDAQ:AAPL) with modem chips in 2024.
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The decision isn’t written in stone, as Qualcomm’s CEO, Cristian Amon, remarked that it was “…their decision to make.” Nevertheless, Amon doesn’t look for Qualcomm to produce such chips for Apple any longer. Why? Because Apple may finally be in a position to make its own mobile modem chips. This comes after reports back in June noted that Qualcomm would likely continue to supply such chips for the iPhone 16. Those reports came from TF International Securities analyst Ming-Chi Kuo.
Qualcomm and Apple have had their difficulties in the past. Originally, Qualcomm would sell Apple a chip but then immediately demand patent royalties for the tech used within the chip Apple just bought. Apple, not surprisingly, objected to this notion. In addition, Qualcomm has accused Apple of blackmail, and lawsuits followed. Apple, seemingly interested in dropping Qualcomm for good, then bought Intel’s (NASDAQ:INTC) modem division in a bid to build its own chips.
Despite this potential major loss of business, Wall Street is still bullish on Qualcomm stock. Indeed, analyst consensus calls it a Moderate Buy with an average price target of $146.06, which implies 17.99% upside potential.
