Normally, it’s not exactly great news when a product line gets canceled. For Qualcomm (NASDAQ:QCOM), it’s a different matter. It’s up in a big way in Friday afternoon trading, and it’s all thanks to Apple (NASDAQ:AAPL) shutting down a product line.
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The word from TF International Securities analyst Ming-Chi Kuo noted that Qualcomm won big thanks to Apple shutting down the next iPhone SE. Thanks to this shutdown, Kuo noted, Qualcomm will likely end up continuing in its role as Apple’s “exclusive supplier” of baseband chips for the upcoming iPhone 16. This is welcome news for Qualcomm; some were expecting Apple to start cutting orders on Qualcomm chips starting next year. Now, however, Apple’s own baseband chip is proving less effective than Apple hoped, leaving Qualcomm in the catbird seat.
Qualcomm holding the Apple business will definitely give it an edge. However, Qualcomm is also looking beyond Apple to its future. For instance, Qualcomm recently partnered with Iridium (NASDAQ:IRDM) to bring satellite messaging services to Android devices. Additionally, Qualcomm is putting together several developments for the automotive market, including a complete concept car shown at this year’s Consumer Electronics Show that featured these developments. Qualcomm CEO Cristiano Amon told it best: “We are all in on auto.”
Overall, analyst consensus calls Qualcomm a Moderate Buy. Thanks to Qualcomm stock’s average price target of $147.33 per share, the stock has an upside potential of 28.55%.
