Apple's In-House Chip Development Faces Delays, Extending Reliance On Qualcomm
Portfolio Pulse from Piero Cingari
Apple Inc. (AAPL) is facing delays in developing its own cellular modem for iPhones, which extends its reliance on Qualcomm Inc. (QCOM) as a supplier. The introduction of Apple's custom modem is now expected to be in late 2025 or early 2026. Despite efforts since 2018, the project's complexities have proven challenging, with the goal to exceed current data download speeds. Qualcomm's stock remained flat, while Apple's stock saw a modest increase of less than 1%.
November 16, 2023 | 9:14 pm
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NEUTRAL IMPACT
Apple's delay in modem development may impact investor confidence in its ability to innovate independently, but the modest stock increase suggests limited immediate concern.
While delays in product development can be seen as negative, the slight increase in Apple's stock price indicates that investors may not view this delay as significantly detrimental in the short term. The company's large scale and diversified product line may buffer the impact of such news.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Qualcomm's position as a supplier for Apple remains unchanged due to the delay, with no immediate impact on its stock price as it remained flat.
Qualcomm's stock price did not react to the news, indicating that the market does not expect an immediate impact on Qualcomm's business with Apple. The continuation of their supplier relationship could be seen as a short-term positive, but the market had already priced in this scenario.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 70