From being a mobile chip giant, Qualcomm is transforming into a connected car and AI powerhouse, with spectacular growth in its new business lines, according to its latest quarterly results.
Why is it important. At a time when Apple is accelerating towards its technological independence and the mobile industry is stagnating, Qualcomm has found new avenues for growth that are driving its financial results to all-time highs.
In figures:
- Qualcomm’s revenue from automotive has grown 68% year-on-year.
- They already reach 899 million dollars in a single quarter.
- It has been breaking records in this segment for five consecutive quarters.
- The total net profit has reached $2.92 billion in fiscal 2024.
- Total revenues are already 10,240 million, above forecasts.
A comparison to understand the impact of this division on Qualcomm’s income compared to its income in 2022 and compared to this fiscal year 2024 that has just concluded.
The context. With Cristiano Amon at the helm, Qualcomm is executing a clear diversification strategy beyond the smartphone, which has been its great growth engine in recent decades.
Historically, the mobile business accounted for three-quarters of Qualcomm’s revenue. Now that dependence is being reduced in favor of other areas with greater growth potential.
behind the scenes. Qualcomm has developed a flexible architecture that allows car manufacturers to combine functions that previously required separate processors: the infotainment system and assisted driving systems.
This has attracted manufacturers such as Mercedes-Benz, which are seeking to simplify the electronics in their cars.
The alarm signal. Apple accounts for 22% of Qualcomm’s revenue… and could stop using its 5G chips as early as 2026. Five years ago it bought Intel’s modem division and, although it is costing more than expected, it is expected that Sooner or later it will become independent with that component, as it did with Intel after migrating from x86 to ARM.
It is precisely with ARM that Qualcomm is immersed in a legal battle over the use of its intellectual property that could have harsh consequences for the American company.
In detail. “We will continue to transform Qualcomm from a wireless communications company to a connected computing company for the AI era,” Amon said after presenting the latest results.
Now Qualcomm expects its sales in the automotive sector to grow another 50% in the next quarter, consolidating the company’s new identity.
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Featured image | Qualcomm
