Qualcomm has posted a significant 17 percent rise in revenue, reaching $11.669 billion for its fiscal first quarter ending December 29, 2024. The chip maker’s revenue growth was largely driven by strong performance in its Handsets, Automotive, and IoT businesses, coupled with higher licensing revenues.
A key driver of Qualcomm’s growth was its Handsets business, which saw a 13 percent increase in revenue to $7.574 billion. This was primarily due to a $448 million boost in chipset shipments, particularly from major OEMs, and a $424 million rise in revenue per chipset, fueled by higher average selling prices and a favorable product mix. The premium-tier Snapdragon platforms played a crucial role in meeting growing demand, reflecting continued consumer preference for high-performance mobile devices.
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The Automotive segment emerged as a strong growth area for Qualcomm, with revenues surging 61 percent to $961 million. The primary factor behind this substantial increase was the growing adoption of Qualcomm’s Snapdragon digital cockpit products, which are being incorporated into new vehicle models. The company’s continued expansion into the automotive industry underscores its ability to leverage its mobile technology expertise in new domains, particularly as vehicle manufacturers integrate more advanced digital systems.
Qualcomm’s IoT business also demonstrated robust growth, with a 36 percent rise in revenue to $1.549 billion. The increase was attributed to $513 million in higher shipments across consumer, industrial, and edge networking products. However, this gain was partially offset by an unfavorable product mix. The expansion of IoT reflects Qualcomm’s efforts to diversify its business beyond smartphones, capitalizing on increasing connectivity needs across multiple industries.
Licensing revenues also saw an uptick, rising to $1.535 billion, representing a $75 million increase. The growth was primarily due to a $32 million rise in estimated sales of 3G/4G/5G-based multimode products and an additional $30 million in higher royalty revenues recognized from devices sold in prior periods. Qualcomm’s licensing business continues to provide a stable revenue stream, reinforcing its leadership in wireless technology patents.
Qualcomm CEO Cristiano Amon in its earnings report emphasized the company’s commitment to executing its long-term strategy, aiming to achieve $22 billion in non-handset revenues by fiscal 2029. Qualcomm remains focused on diversification, with 5G, high-performance low-power computing, and on-device AI expected to drive further adoption of its technologies in industries beyond mobile handsets, such as automotive and IoT.
Despite its strong performance, Qualcomm acknowledges potential challenges, including competition from vertically integrated customers like Apple. Additionally, geopolitical factors such as U.S.-China trade relations and national security policies may impact business growth and overall operations.
To strengthen its licensing business, Qualcomm has signed 4G and 5G license agreements with Shenzhen Transsion Holdings, a rising China-based OEM with a significant presence in developing markets. As part of this agreement, Qualcomm will dismiss all outstanding litigation with Transsion.
The company has also concluded renewal negotiations for long-term licenses with two key Chinese OEMs, with final agreements expected soon. Additionally, discussions are ongoing with Huawei, whose previous licensing agreement has expired.
Looking ahead, Qualcomm projects revenue in the range of $10.3 billion to $11.2 billion for the current quarter. As it continues to drive innovation across multiple sectors, the chip company remains focused on expanding its presence in high-growth areas for bolstering its revenue.
Baburajan Kizhakedath