Apple is the “best play” around 5G, noted tech investor Gene Munster told CNBC on Monday.
Munster said anyone who thinks Apple will miss the 5G window has a “misguided view.”
“There’s two basic views of owning Apple. One is that this is a product cycle company and that you own it … when numbers are negative around the iPhone in anticipation of the numbers turning positive,” he said. “5G … will clearly drive that.”
The other is the idea of Apple as a service company, a “more sustainable model,” he added.
“Both of those narratives should get a lift” from 5G, he said. “That’s why I think it’s the best-positioned company. I feel strongly that this stock will act positively — hard to predict the quarter when that happens — but over the next two years we should get that lift.”
I honestly didn’t see that one coming because I thought Apple, not that they missed the boat, but was late to the boat regarding 5G.
Gene Muster is well respected on Wall Street, so I have no choice but to put Apple back on the 5G list. Speaking of Apple, they struck a deal Tuesday with Qualcomm Inc. to halt all litigation and start using their modems again, including the new 5G versions.
The modem connects phones to cellular networks and lets devices browse the web, download apps and make phone calls. Qualcomm is the expert in the field of modems and have perfected the technology to work on varying wireless network operator equipment around the world, while seamlessly working on the older wireless network as well.
Apple agreed to make a lump-sum payment to Qualcomm to cover unpaid royalties over the past nine quarters. Cowen analyst Matthew Ramsay estimates the catch-up payment is worth about $5 billion to Qualcomm.
“Apple needed Qualcomm’s 5G modem for its iPhones in 2020,” Rosenblatt Securities analyst Jun Zhang said. “The settlement will be a positive for Qualcomm’s modem shipments in both the second half of 2019 and 2020, as we believe Apple will switch to Qualcomm modems in the second half of this year.”
It should be no surprise on the news Qualcomm’s stock popped higher yesterday and Qualcomm gained $30 billion in market value in the process.
But more importantly, where is price headed, lets go to the charts? Well, it’s not heading to $23…boy did I get this one wrong.
Qualcomm…Left Out Of The Rally
Within the past several weeks, I started to really pay attention to levels that serve as magnets to my trading methodology of supply and demand (the pink dotted line) and traders who sure this made out handsomely as price moved to the upside.
Thus, a monthly close above $83, and if the Markets continue to rally this year, price could test the all-time highs at $100 over the next 12-18 months.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.
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