Iridium's partner for satellite-based smartphone services turns out to be chipmaker Qualcomm, though Samsung could still figure in its plans. Investors will mull how much upside there is for IRDM stock now that the suspense is over.
Iridium late Thursday said it will partner with Qualcomm for satellite-based, two-way text messaging services. Also, the companies expect availability on the services in the back half of 2023. New smartphones will need to be equipped with Qualcomm's 5G modems.
"As opposed to working directly with a single smartphone OEM (Samsung), we believe this partnership on the chip and technology side with Qualcomm should lead to global connectivity across a number of different Android-enabled smartphone devices and ultimately beyond just smartphones," Raymond James analyst Ric Prentiss said in a note to clients.
In late July, Iridium said it had entered into a development agreement for satellite-based smartphone services with an unnamed company.
According to a report in November, Iridium's partner was South Korea-based electronics giant Samsung. It's the biggest maker of smartphones using Google's Android operating system.
IRDM Stock Posts Big 2022 Gain
Iridium stock soared 12.8% to close at 59.99, moving through a buy zone on the stock market today. Meanwhile, with Friday's gain, Iridium stock has jumped more than 16% for 2023. It holds an entry point of 53.71. Also, shares have popped 36% from a year ago.
Qualcomm stock surged 5.4% to finish at 115.34.
Iridium garners revenue from wholesale data services.
Analysts have not yet built satellite-based smartphone services into Iridium financial targets. Earnings for IRDM stock are due in mid-February. Prentiss said: "We expect some financial information with 2023 guidance on the Q4 2022 call."
Recent announcements from Apple and T-Mobile US involve text-based services targeting ultra-rural and sparse dead-zone areas with no cellphone service. Apple has partnered with Globalstar while T-Mobile tapped Elon Musk's SpaceX and its Starlink satellite constellation.
Meanwhile, the Relative Strength Rating of IRDM stock is 84 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
