So Qualcomm went from 1600M to 160M, with 770M fine from Taiwan.
I am going to assume Apple contribute 670M to their profits? Assuming everything else being equal to last year.
Since Apple continue to buy chips from Qualcomm, which means Apple contribute a lot more then the 670M estimate.
Assuming a typical 30% Net margin for Chips, 120M unit @ $25 each / year.
Roughly $225M Profits / Q.
Or In total roughly $900M per Q, that is Apple contribution to Qualcomm's profits.
Even if we round it down to $800M, that is saying Apple account for roughly 50% of Qualcomm's profits.
Somewhere along the lines tell me the numbers aren't right. Correct me where i am wrong.
The YoY difference in the 'Other Items' excluded from non-GAAP earnings was a little more than the $778 million for the Taiwan fine. The difference was $932 million. There was, e.g., an increase in acquisition-related charges. The non-GAAP comparison is $1.905 billion (for the year ago quarter) to $1.375 billion - a decline of $530 million.
But I wouldn't attribute all of that decline to Apple's business. Qualcomm is already having to change how it does business with other companies as a consequence of various regulatory bodies' actions. And other companies may well be in better positions when it comes to the business they've been doing with Qualcomm (and might instead do with others) because of what's happened.
Cue the bidding war (a la Imagination Tech) by Samsung, LG, and (maybe) Sony. Samsung would love to have them, but they already have a sizable chip fab of their own and some ongoing corporate shakeups. LG is more likely because they really want to compete more with Samsung. Sony might be interested in expanding a still profitable component market that could help cut costs for their struggling mobile division. Sony could slash the license fees and still make a decent profit, and value-add by bundling their camera sensors and other tech to OEMs. Basically the same arguments apply for LG really, but LG is much deeper into mobile than Sony is, at this point. That could change, of course, if Sony's gaming division is working with their mobile division on some type of Playstation Phone/Vue device to compete with the Nintendo Switch. Having access to a high-end SOC with virtually no license fees would really help boost profits for such a product. That kind of move could save their mobile division while offering a clear differentiator from the crowded Android phone market. My $0.02, as always.
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But I wouldn't attribute all of that decline to Apple's business. Qualcomm is already having to change how it does business with other companies as a consequence of various regulatory bodies' actions. And other companies may well be in better positions when it comes to the business they've been doing with Qualcomm (and might instead do with others) because of what's happened.