Qualcomm said its revenue rose 19 percent in fourth-quarter of fiscal 2024 to $10.244 billion and 9 percent in full-fiscal to $38.962 billion.
Qualcomm’s QCT business has generated revenue of $24.9 billion (up 10 percent) from smartphone customers, $5.4 billion (down 9 percent) from IoT business and $2.9 billion (up 55 percent) from the Automotive industry.
Canalys Analyst Le Xuan Chiew recently said global smartphone shipments grew 5 percent in Q3 2024, reaching 309.9 million units. In China, smartphone shipments rose 4 percent to 69.1 million units.
For its fiscal first quarter, Qualcomm expects revenue around $10.90 billion and earnings of $2.95 per share.
Qualcomm forecasted first-quarter sales of $9.3 billion in its chip segment and $1.55 billion in its patent-licensing business.
Qualcomm, which derives 46 percent of its revenue from China, has seen significant sales growth driven by new device upgrades. The company dismissed concerns that these sales were influenced by potential tariffs related to Donald Trump’s recent election, Reuters news report said.
Although Qualcomm has a deal with Apple to supply chips until at least 2026, Apple’s eventual shift to its own modem chips remains a concern. Qualcomm is countering this by expanding into laptops and AI-driven data centers to diversify revenue.
Qualcomm signed a new licensing deal with Shenzhen Transsion, a major phone maker for developing markets, bolstering its foothold in global markets. The company is also engaged in a legal battle with Arm, whose technology underpins Qualcomm’s flagship products; the dispute trial is set for December.
AI focus
Qualcomm is positioning itself at the forefront of the AI revolution, focusing on transforming from a wireless communications leader to a connected computing company, driven by the growing momentum in edge AI. Cristiano R. Amon, President and CEO, highlighted Qualcomm’s strategy of leveraging its advanced technologies to diversify and capitalize on new opportunities across industries. Key elements of Qualcomm’s AI-focused initiatives include:
Qualcomm sees on-device AI as a game changer, enabling capabilities that enhance context awareness, immediacy, personalization, and privacy. By processing data locally, on-device AI offers more reliable and secure experiences, crucial for transforming user interactions across mobile, IoT, automotive, and computing platforms.
Qualcomm aims to lead the edge AI transformation by developing powerful semiconductor solutions that enable AI capabilities directly on devices. This includes advancements like the Snapdragon 8 Elite, which is tailored to handle complex, multimodal GenAI workloads in real-time with enhanced performance and power efficiency. These solutions also power a wide range of devices, from mobile handsets to IoT, AR, and automotive platforms.
Qualcomm is collaborating with major industry players, including Meta, Amazon, Microsoft, OpenAI, and IBM, to drive AI adoption. For example, Qualcomm’s collaboration with Meta on the Llama 3.2 model demonstrates their joint commitment to advancing AI-powered mobile experiences. Additionally, the integration of Amazon’s cloud and Qualcomm’s edge technologies creates a seamless AI ecosystem that benefits both developers and end-users.
Qualcomm has expanded its Snapdragon X Series with the Snapdragon X Plus eight-core platform, focusing on delivering transformative on-device AI performance in thin, light personal computing devices. This move aims to make AI-powered personal computing more accessible and affordable to a broader range of users.
Qualcomm is pushing AI into the realm of extended reality (XR), with platforms like Snapdragon XR2 Gen 2 powering immersive devices like the Quest 3S and Ray-Ban Meta glasses. Additionally, Qualcomm’s innovations in industrial IoT, through the launch of the IQ Series, are driving the next wave of edge computing in industrial automation, robotics, and smart devices.
Qualcomm’s automotive platforms, such as the Snapdragon Cockpit Elite and Snapdragon Ride Elite, offer a comprehensive AI-driven experience for both in-vehicle infotainment and autonomous driving. These platforms feature cutting-edge AI processing power, safety features, and multimodal capabilities, helping automakers build the next generation of software-defined vehicles.
Baburajan Kizhakedath
