Well, what we're gon na do is get rid of all these buttons and just make a giant screen a giant screen. What do you know about smartphones, the toy? It's about communication, entertainment or something about peer pressure, but do you know what it's really about? What do you see a device that improves convenient and revolutionizes the way we speak? I see a system-on-chip, a modem, a camera and a random access memory. Chip I see $ 450, that's what it cost to manufacture one iPhone. Over 40 point, eight million iPhones were sold in 2019.

People spent over seven hundred fifteen billion dollars in smartphones worldwide in the year of 2019. Behind the scenes, each piece of the smartphone is bargained by different companies just to get their system-on-chip battery or display inside a certain smartphone, and that's what smartphones are really about. Smartphones are an economy. The serviceable available opportunity, also known as a total addressable market for 5g, is continuing to expand in the coming years.

In 2019, the total addressable market was worth around 65 billion dollars, but by 2022, analysts estimate that it will be worth 110 billion dollars by 2035 nearing the end of the transition. The 5g market is estimated to be worth thirteen point two trillion dollars. This expansion allows for a massive growth opportunity for Qualcomm in the future, as 5g allows Qualcomm to raise prices for premium products which would increase their profit margins by a significant amount. With the transition of 1g to 4G, the serviceable available opportunity was constrained by the smartphone.

However, with 5g we see the market starts to expand to other industries, including healthcare, energy distribution, retail factories, automobiles and essentially every other major industry. The Qualcomm CEO said that 5g is the biggest opportunity he's ever seen in the company's 35 years of existence with higher profit margins and more industries to disrupt. This will allow Qualcomm to leverage Rd in order to drive faster growth. 5G will offer a multitude of advantages with the most obvious one being faster speeds at the millimeter wave level, 5g will be 100 times faster than 4G.

To put this into perspective, you can download a two-hour film in 10 seconds rather than seven minutes. 5G also has increased bandwidth for the IOT, which will lessen lag by massive extent in crowded areas, along with improved bandwidth. 5G also has far lower latency, which would mean less delay for online communication, more reliability for self-driving and practically no lag when it comes to remote gaming. As 5g deployment continues to ramp up, customers who purchase 5g would be able to have their devices automatically switch to 5g in 5g enabled areas in half their devices turned back to 4G in 4G.

Only areas this 4G and 5g multimode will allow for a smoother transition. With the rise of electric vehicles from companies like Tesla, automobiles are advancing to more technology-based features, including autopilot infotainment systems and data connection. These are the three sectors Qualcomm of profit from telematics infotainment and the adaptive driver assistance system also known as the ADA's. The telematics is the equipment that connects the car to the internet, which Qualcomm is heavily involved in other products, along with telematics kharkom supplies, a huge portion of the infotainment dashboard, which all comes at a very high leverage compared to the smartphone business.

Lastly, the ADA's will require all sorts of data stores and chips to run the system at a fast and reliable rate. When it comes to competition, it's practically non-existent. Holcomb has an extremely strong vote, though. Off of its patent portfolio Paul combs patent portfolios, Asha named as the most valuable patent portfolio in the world.

These patents and licenses make it practically impossible to compete with the technology. Qualcomm has the main revenue and profit driver for Qualcomm is its Snapdragon platform and will soon be there snapdragon 5g platform. The company has solved the long going issue of the modem antenna with the Snapdragon 5g platform, which has been developed by Qualcomm's engineers. Brennan had to be long time, this platform will be adoptable to smartphones, pcs, automobiles and networking outside of cost.

There isn't much downside to upgrading to 5g as battery life will still remain at a high level compared to 4G. In February, Qualcomm announced the release of the Qualcomm Snapdragon x16, which allows for the aggregation of all the 5g spectrum bands. First of all, what are the spectrum bands? Essentially, these are the three spectrum bands the low band made ban and the millimeter wave. The low band has higher spread, has much higher latency and lower bandwidth.

The mid band will have a spread large knot to cover at most a few homes in the millimeter wave will be heavily concentrated but allow for higher bandwidth and low latency, because these bands overlap over certain spaces with the Snapdragon X 60. This will allow for dynamic spectrum sharing dynamic spectrum sharing will allow for all the bands to be utilized and ultimately provide larger bandwidth and lower latency call command Apple once had legal trouble with each other, but due to apple's reliance on qualcomm, these lawsuits were dropped and Apple agreed to six-year licensing agreement Apple attempted to use Intel's modems for the iPhone access, but these proved to be extremely problematic, as they had plenty of issues. The iPhone 12 coming out in September 2020 will be 5g, enabled the Qualcomm Snapdragon 5g platform, allowing for massive potential to profit because of the fact that so many companies rely on Qualcomm. This makes welcome stock extremely reliable.

The largest of columns partners include Samsung HTC, hallway LG Apple Asus, Razer, Google, Motorola and Nokia. Another sector of Qualcomm that is heavily overlooked is Qualcomm ventures. Talkin ventures is an investment segment of Qualcomm that invest in the future of technology, including 5g. A I digital health.

The Internet of Things, networking and many more industries they've proven to be extremely successful. So far. For example, zoom communications, one of columns largest investments, has been a multi bagger for Qualcomm. So far, another successful investment for them is ring which sells a doorbell that has a security camera attached, allowing the user to see who approaches the users house without the user even being there magic leap, is also another investment with huge potential as a laaser of sci-fi Type 3d - visionary that isn't augmented reality of virtual reality by also 3d images that can be moved with their hand due to factors like the global pandemic call.

Comm has gotten to a very appealing valuation. On a Chilean key of eighteen and a 4-peat of 15, a p/e at the mid tenth is extremely low for a company that is expected to have its revenue growth 25 % year over year by 2021 to put Qualcomm as valuation into perspective. Microsoft is expected to have its revenue growth in the low 10 % in the next few years, but is trading our Chile of 26 and afford P of 24, along with Microsoft, all the other large tech companies trade out a similar valuation to Microsoft, which just shows How much of a hidden gem holcomb stock really is using the discounted cash flow analysis? I obtained an intrinsic value of one hundred nine dollars and 40 cents per share, proving that the stock is undervalued from a cash flow standpoint using the relative valuation analysis. I got an intrinsic value of one hundred twenty two dollars and seventy cents per share, showing how Qualcomm is undervalued relative to its peers.

Calkins diversification of revenue allows it to be a reliable stock. Over the long term, the company sells products and auto computing, cellular, IOT and non-cellular IOT last but not least, is kharkom strong financial status. The company currently has eleven point: eight billion dollars of cash and thirteen point. Four billion dollars of long-term debt, with the one to one long-term debt to cash ratio, call comes balance sheet, manifests how the company isn't in any financial danger to top it off.

Their profit margin allows for steady net income of four billion dollars per year. This type of cash flow allows welcome to leverage R & D despite the global pandemic, irate Qualcomm stock as a strong buy due to its appealing valuation and growth concho. If you guys enjoyed this video, please hit the like button and subscribe. I appreciate your support.