Following Apple's decision to discontinue the iPhone SE, analysts describe Qualcomm as the "largest winner."

An respected analyst dubbed the San Diego-based chip maker the "largest beneficiary" of Apple (NASDAQ:AAPL) allegedly scrapping the next generation of the iPhone SE, which led to a nearly 4% increase in Qualcomm (NASDAQ:QCOM) shares on Friday, along with gains in the broader market.

In contrast to predictions that Qualcomm (QCOM) would start to lose orders from Apple (AAPL) next year, TF International Securities analyst Ming-Chi Kuo stated on Friday that Qualcomm (QCOM) would likely stay the "sole provider" of baseband processors for the iPhone 16 series, coming in 2024.

The low-end iPhone SE 4 was initially going to be the first device to employ Apple's baseband chip when it was first introduced in 2024. Depending on how well the iPhone SE 4 was coming along, Apple would then decide whether or not to allow the baseband chip to be used in the iPhone 16 device.

However, Kuo continued, "the cancellation of the iPhone SE 4 has significantly increased the chances that Qualcomm will continue to be the sole supplier of baseband chips for the new iPhone 16 series in 2H24, which is preferable to the market consensus that Qualcomm will begin losing iPhone orders in 2024.

Kuo claimed last month that Apple (AAPL) has discontinued the iPhone SE 4 due to low demand.

It was anticipated that Apple (AAPL) would release its own 5G chips the following year.

Additionally, Qualcomm (QCOM) is expected to continue to dominate the high-end mobile radio frequency market this year and the following, generating "markedly higher earnings" than its rivals, according to Kuo.

Additionally, the analyst pointed out that Qualcomm's (QCOM) product mix ought to lessen the negative effects of a prospective recession and enable it to resume "strong growth" after a recovery.

Qualcomm (QCOM) launched Snapdragon Satellite on Thursday, a satellite-based two-way communications option for expensive Android smartphones.