Qualcomm has reported revenue of $10.936 billion (+36 percent) and net income of $3.73 billion (+84 percent) during its fiscal third quarter ended June 26, 2022.
Qualcomm generated quarterly revenue of $6.1 billion from handsets chipset business, $1 billion from RF front-end business, $350 million from Automotive business and $1.8 billion from Internet of Things (IoT) business.
Qualcomm said its revenue from handsets business is on track to grow slightly below 50 percent in FY22, driven by increased processor content per device, and expansion of addressable market.
Qualcomm’s RF front-end business is expanding solutions beyond smartphones: Next-gen Wi-Fi and Bluetooth RF front-end modules allow for superior wireless performance in Automotive and IoT devices.
Qualcomm’s Automotive business has design-win pipeline of >$19 billion on continued traction and design-wins across global automakers and Tier-1 customers for Snapdragon Digital Chassis technology. Pipeline includes design win with the Volkswagen Group’s software company – CARIAD – to power Volkswagen’s future automated driving solutions.
Qualcomm’s IoT business is on track to deliver Windows on Snapdragon Compute platforms for next generation PCs powered by our custom CPUs, while redefining mobile productivity and on-device AI. Qualcomm launched four new Qualcomm Networking Pro Series Wi-Fi 7 platforms, the world’s most scalable Wi-Fi 7 portfolio, initiating a new era of 10 Gbps Wi-Fi.
Qualcomm also announced two new 5G connected Qualcomm Robotics platforms with enhanced AI capabilities to power next-generation robotics and drones.
Outlook
Qualcomm, the #1 chipset supplier to smartphone makers, forecast fourth-quarter revenue below Wall Street targets on Wednesday, bracing for a difficult economy and a slowdown in smartphone demand that could hurt its mainstay handset chip business.
Qualcomm forecast current-quarter revenue between $11 billion and $11.8 billion.
The San Diego-based company now expects smartphone sales to fall 5 percent this year, compared with its prior outlook for flat growth. Research agency IDC had projected a 3.5 percent drop in smartphone shipments in 2022.
More than half of Qualcomm’s total sales come from the handset segment, which makes modem chips for Apple iPhones and chips that power some models of Samsung’s Galaxy S series. Qualcomm signed a new patent license deal with Samsung till 2030.
“We expect the elevated uncertainty in the global economy and the impact of COVID measures in China will cause customers to act with caution in managing their purchases in the second half,” Qualcomm Chief Financial Officer Akash Palkhiwala said.
The Ukraine crisis and China lockdowns have also worsened supply-chain snags and hurt demand, forcing many phone makers to cut orders for chips.
Company executives reiterated that Qualcomm’s focus on supplying chips to premium phones and its push to diversify into other sectors such as automotive would cushion the hit from cooling smartphone demand.
Qualcomm CEO Cristiano Amon said revenue from the automotive business reached a record in the third quarter and would surpass that in the next.
Revenue for Qualcomm’s chip designing business was $9.38 billion, up 45 percent on the year while its licensing business produced $1.52 billion, up 2 percent on the year.
Qualcomm is sharpening its focus on chips that power phones rather than modem chips used to connect to networks as major customer Apple works on its own modem chips.
