Telecom Lead America: Anand Chandrasekher, CMO, Qualcomm, said the chip major expects 24 percent CAGR growth in smartphone market during 2011-16. Mobile markets in India, China and Latin America will drive the growth.
The chip major is sampling the third generation of LTE/4G currently. “Many of our competitors have just started first generation of LTE,” Chandrasekher told visiting journalists at San Diego.
Its approach is to own the key technology blocks.
Qualcomm is spending heavily in Research and development (R&D).
Thanks to its R&D, Qualcomm claims that it is number one in application processor, graphics processor, digital signal processor, 3G/4G/LTE and RF.
Its R&D expenses increased 31 percent y-o-y primarily due to an increase in costs related to the development of CDMA-based 3G, OFDMA-based 4G LTE and other technologies for integrated circuit and related software products and to expand our intellectual property portfolio.
Qualcomm on Wednesday also mapped three major trends that will have impact on business and consumers.
The first trend is computing refined, according to Chandrasekher, who joined Qualcomm on 6 August from rival Intel.
Qualcomm is observing unprecedented data demand. This is primarily driven by smartphones across the world. “We are working on addressing data demand issues,” he added.
Digital 6th sense is the third trend.
Recently, Paul E. Jacobs, chairman and CEO of Qualcomm, said: “As we continue to invest in and execute on our strategic priorities, our broad licensing program and industry-leading Snapdragon and 3G/LTE chipset roadmap position us for double-digit revenue growth again in fiscal 2013.”
Qualcomm is betting big on 3G and 4G. Its fourth quarter fiscal 2012 was $4.87 billion, up 18 percent year-over-year. Operating income decreased 11 percent sequentially to $1.24 billion. Net income grew 20 percent y-o-y to $1.27 billion.
For fiscal 2012, Qualcomm’s revenues were $19.12 billion, up 28 percent y-o-y. The Chip major’s net income for the fiscal was $6.11 billion, up 43 percent y-o-y.