Qualcomm (NASDAQ:QCOM) shares hiked Wednesday, on word of a bright new modem. CEO Cristiano Amon told the media its latest modem will create a big distance in performance versus Apple (NASDAQ:AAPL), which has made its first foray into the technology.
Modems are a key component of smartphones that connect the device to the mobile network. Qualcomm is one of the biggest modem suppliers in the world and for years has been the go-to company for Apple’s iPhones.
But in 2019, Apple bought Intel’s modem business with the view of designing its own modem in-house, much like it does with its smartphone processors.
It has taken some time for Apple to release its first modem and it did so quietly with the launch of the iPhone 16e last month. The cellular modem is called the C1.
This week, Qualcomm announced the X85, its latest high-end modem. In an interview on Tuesday, Amon touted the improved performance of the modem, suggesting it would create a big gulf between it and Apple.
“It’s the first modem that has so much AI, it actually increases the range of performance of the modem so the modem can deal with weaker signals,” Amon said.
“What that will do will set a huge delta between the performance of premium Android devices, and iOS devices, when you compare what Qualcomm can do versus what Apple is doing.”
QCOM shares gained 95 cents to $155.41.
