OT Mobile Usage in Emerging Markets

From Qualcomm CEO, Aklash Palkiwala Q&A at the JP Morgan Conference

Generally, what has happened through COVID is, the phone was already a super important device for everyone individually, but it became an even more important device, especially in emerging markets.

If you look at how phones are now used in emerging market, most of the TV watching has shifted to phones. A lot of the schooling that happened for kids happened over the phone. So, as people are buying phones, they’re upgrading up and this is not just U.S., Western Europe phenomena. We are seeing it across all markets, especially Southeast Asia, India, Latin America. So that’s showing up in our mix. So, market – overall units weaker, but stronger mix. And that’s been reflected in our results and is reflected in our guidance.

https://seekingalpha.com/article/4513884-qualcomm-incorporat…

Apple has registered 20 per cent growth in the global smartphone market from the first quarter of 2021 till the same period this year, a new report showed on Monday.

According to a report by Europe-based online shopping platform Burga, Apple is gaining ground in market share despite the company’s smartphones mainly being considered expensive compared to competitors.

Amid the company’s growth, the smartphone space is still faced with challenges, including component shortages, price inflation and the overall economic uncertainty resulting from the pandemic recovery.

“However, the company has significantly expanded its reach in recent years by exploring new opportunities like capitalizing on the growing used smartphones sector, especially across the emerging markets,” said the report.

https://www.business-standard.com/article/international/appl…

Looks like Apple’s smartphones are finally gaining traction in emerging markets. Thus far it was a huge success in US, Europe and a few other OECD countries. In many emerging countries like India its market share is still miniscule. So there are opportunities for growth to continue.

I also believe Qualcomm is very attractive, as it is the top player in connectivity technologies: 5G, WiFi, Bluetooth, GPS. And it is down 30% YTD and is trading at fwd PE of 10.5.

6 Likes