Arm Holdings Plc. ARM is all set to report its December quarter earnings on Wednesday. The semiconductor designer is taking a look at “strong outcomes and steering” forward, surprisingly because of a “sustained Android demand,” in accordance with KeyBanc Capital Markets analyst John Vinh.
What Occurred: SoftBank-owned Arm Holdings is poised to realize on account of energy in demand from Android cellphone makers, Vinh stated in a observe seen by Benzinga.
This comes as a shock within the backdrop of Samsung Electronics Co Ltd. SSNLF, the world’s largest Android cellphone maker, shedding its crown to Apple Inc. AAPL after a blemish-free run on the prime for 13 years.
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Banking On AI
Nonetheless, the AI-focused launches in January may assist Arm. “We anticipate strong outcomes and steering for ARM, benefiting from sustained Android demand,” Vinh stated.
“The market is not off course, aided by improved vacation season demand,” stated Canalys Senior Analyst Toby Zhu.
“There have already been loads of new flagship Android launches benefiting from the on-device AI pattern, from Google Pixel and several other Chinese language distributors.”
The primary month of 2024 has seen new flagships from Samsung and OnePlus – whereas Samsung launched the Galaxy S24 collection with a eager deal with AI in partnership with Android-maker Alphabet Inc.’s GOOG GOOGL Google, Oppo-subsidiary launched the OnePlus 12.
Each smartphones are powered by Qualcomm Inc.’s QCOM top-tier Snapdragon 8 Gen 3 chipset.
China Slowdown To Harm Apple And Its Suppliers
Apple’s iPhone gross sales steering in its December quarter earnings name may result in a “potential danger” for one in all its suppliers, Cirrus Logic Inc. CRUS.
Cirrus is an Austin, Texas-based fabless semiconductor provider.
Nonetheless, Huawei’s resurgence has put a spanner in Apple’s plans in China. The upcoming Mate 70 collection smartphone will take the iPhone 16 collection head on – Huawei is predicted to launch it in September this yr, days after the iPhone 16’s anticipated launch.
“Nice China’s income decline of 13% is worse than anticipated and can possible drive extra issues into the remainder of 2024,” Oppenheimer analyst Martin Yang stated.
Wedbush’s Dan Ives has additionally known as Apple’s steering for the March quarter “very conservative,” including that it is “no secret that Apple is struggling to battle Huawei.”
Apple’s China challenges may additionally preserve its shares “range-bound,” in accordance with analysts.
Take a look at extra of Benzinga’s Client Tech protection by following this hyperlink.
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