'Apple's Effort to Replace Qualcomm Chip in iPhone Falls Further Behind' -Bloomberg
Portfolio Pulse from Benzinga Newsdesk
Apple Inc.'s project to develop its own modem to replace components from Qualcomm Inc. has faced delays, pushing the timeline back to 2026. This setback means Apple will continue to rely on Qualcomm's technology for its iPhones for a longer period than initially expected. The delay could affect Apple's plans to control more of its supply chain and potentially impact its negotiating power and cost structure for components.
November 16, 2023 | 7:57 pm
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POSITIVE IMPACT
Qualcomm is likely to benefit in the short term from Apple's delay in modem chip development, as it ensures continued business from Apple for a longer period. This may positively impact Qualcomm's revenue forecasts and strengthen its market position.
Qualcomm's position as a supplier to Apple is extended due to the delay, which could lead to a more stable revenue stream from one of its largest customers. This news is likely to be viewed positively by investors, as it reduces uncertainty around Qualcomm's business with Apple in the near term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Apple's delay in developing its own modem chips may temporarily hinder its supply chain control ambitions, potentially affecting its cost structure and margins. Investors may view this delay as a short-term setback in Apple's strategy to reduce dependency on third-party suppliers.
While the delay is a setback for Apple's long-term strategy to control its supply chain, the immediate financial impact may be limited as the company continues its current operations with Qualcomm. The news may cause some concern among investors, but Apple's strong market position and diversified product line mitigate the short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80