Qualcomm Faces Pressure Amidst Apple Licensing Concerns

Qualcomm's shares fell nearly 4% as analysts expressed concerns over its relationship with key smartphone manufacturers Apple and Huawei, particularly with Apple's plans to develop its own modems. While Qualcomm reported record overall sales in its recent fiscal quarter, its licensing revenue missed expectations, raising investor apprehensions. Analysts from JPMorgan downgraded their price target, citing these external challenges, while Bank of America maintained a bullish outlook, highlighting Qualcomm's strength in smartphone technologies and diversification into automotive sectors. Despite a projected flat revenue outlook for its patent licensing business and uncertainties surrounding Huawei negotiations, several analysts affirmed 'Buy' ratings due to Qualcomm's strong market position and growth in IoT and automotive sectors. The company's significant revenue increase and net income growth further underscore its robust financial standing. Overall, Qualcomm's performance reflects a complex landscape of opportunities and challenges influenced by competitive dynamics in the tech industry.