Qualcomm sales up 1% despite 10% rise in smartphone industry

Qualcomm has revealed its financial result – showing 1 percent rise in revenue to $9,389 million for its fiscal second quarter ended March 24, 2024.
Qualcomm Sound Platforms for Audio ExperienceQualcomm has generated revenue of $8,026 million (up 1 percent) from QCT and $1,318 million (up 2 percent) from QTL during January-March 2024.

Smartphone business

Qualcomm has generated sales revenue of $6,180 million (up 1 percent) from supply to Smartphone business. The marginal growth does not reflect the recovery of the global smartphone industry that achieved 10 percent rise in shipments.

Qualcomm says its Snapdragon Mobile platforms continue to set the bar for performance and on-device Gen AI capabilities in premium and high-tier smartphones.

Qualcomm said its recently launched flagship Android devices powered by Snapdragon 8 Gen 3 are seeing strong demand globally, especially in China.

Qualcomm claims that revenues from Chinese OEMs increased by >40 percent year-over-year in the first half of fiscal 2024, reflecting strong competitive positioning and recovery of demand.

According to Canalys research, the worldwide smartphone market rose 10 percent in Q1 2024 to 296.2 million units. The smartphone market achieved double-digit growth after ten quarters. The surge in smartphone market was fueled by vendors introducing refreshed portfolios.

Revenue target

Qualcomm is aiming to achieve revenue of $8.8 billion – $9.6 billion during the April-June quarter of 2024. Canalys says some of the smartphone brands are ramping up production and stockpiling raw materials in anticipation of further increases in Bill of Materials (BoM) costs.

“In 2024, vendors will maintain a cautious stance, focusing on wallet share, inventory management, and supply chain optimization. Meanwhile, exploring avenues to commercialize the generative AI wave remains critical for all players within the device ecosystem,” said Canalys Senior Analyst Sanyam Chaurasia.

Automotive business

Qualcomm has generated sales revenue of $603 million (up 35 percent) from Automotive business.

Qualcomm says the Snapdragon Digital Chassis solution is the industry’s leading technology solution. Qualcomm said its design win pipeline is now ~$45 billion. Qualcomm says it’s growing faster than the addressable market and remain on track to achieve >$4 billion of revenues in fiscal 2026.

IoT business

Qualcomm has generated sales revenue of $1,243 million (down 11 percent) from IoT business.

In Edge Networking IoT, Qualcomm’s networking solutions gained traction as the Wi-Fi 7 transition expands to the enterprise. In PCs, Qualcomm recently expanded compute portfolio with the Snapdragon X Plus Platform. The Meta Horizon OS, running on Snapdragon, is open and available to third-party hardware makers – a significant milestone toward expanding the device ecosystem.

Baburajan Kizhakedath