Qualcomms quarterly report shows signs of improvement in the smartphone

Qualcomm’s quarterly report shows signs of improvement in the smartphone market

Many investors looked to Qualcomm’s quarterly statistics for signals about smartphone market dynamics, and the company said its revenue in the segment rose 16% year-over-year to $6.69 billion in the latest quarter. This year the company expects a slight increase in deliveries of components for smartphones.

    Image source: Qualcomm Technologies

Image source: Qualcomm Technologies

For Qualcomm, the smartphone segment remains the second most important source of revenue, and management recognizes that the company’s customers are still faced with the need to clear excess inventory. According to Qualcomm representatives, the company’s total revenue in the current quarter will be between $8.9 and $9.7 billion, which is quite in line with investors’ expectations ($9.36 billion). In its most recent quarter, Qualcomm’s revenue beat analysts’ estimates, reaching $9.92 billion versus expectations of $9.51 billion, up 5%. Net income rose 24% to $2.77 billion.

According to Qualcomm CEO Cristiano Amon, the smartphone market this year will either remain at last year’s level or grow slightly. The past year has been a period of stabilization, he said, and now the Android device segment is entering a state of equilibrium. The new Samsung Galaxy S24 range of flagship smartphones continues to use Qualcomm processors, and the latter company expects to continue the partnership for several more years.

In the Internet of Things segment, Qualcomm sells, among other things, chips for headsets from the Oculus family; in this area, the company’s sales fell by 32% to $1.13 billion in the last quarter. The automotive business increased sales by 31% in the last quarter, but in absolute terms it only reached $589 million. Qualcomm considers this market segment to be very promising, but its development is very slow due to traditional inertia. Overall, QCT, which combines chips for smartphones, cars and the Internet of Things, increased its revenue by 7% to $8.42 billion in the last quarter. Royalties within the QTL division reduced core revenue by 4% to $1.46 billion. According to Apple, the head of Qualcomm has decided to extend the licensing agreement between the companies until March 2027. After the close of trading and the release of Qualcomm’s reports, the company’s shares fell a fraction of a percent.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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