Qualcomm up 5% in Q1 on progress in handsets and automotive


Qualcomm grew income 5% in comparison with Q1 2023 regardless of contraction within the IoT enterprise

Progress in its handset and automotive companies led Qualcomm to first quarter 2024 revenues of $9.9 billion throughout its licensing and connectivity segments. The corporate reported 16% progress in handsets and 31% progress in automotive in comparison with the identical quarter final 12 months. The corporate acknowledged industry-wide softness in IoT (which Qualcomm breaks down into shopper, industrial and edge networking), however sees alternatives round AI-enabled PCs utilizing its Snapdragon X Elite platform that includes the Oryon CPU, and as gadgets that includes 5G Lowered Functionality (RedCap) silicon hit the market. 

Offering commentary on the handset market, CEO Cristiano Amon described the corporate’s newest premium-tier Snapdragon 8 Gen 3 cellular platform as “setting a brand new commonplace for on-device gen AI experiences for premium smartphones.” He referred to as out Samsung’s use of the 8 Gen 3 in its current Galaxy S24 globally, and within the Galaxy S24 and Galaxy S24 Plus in some markets. 

And whereas he declined to provides specifics on the period of the deal, Amon did share that Qualcomm has “prolonged a multi-year settlement with Samsung referring to Snapdragon platforms for flagship Galaxy smartphone launches.” Associated to licensing of a few of its applied sciences, Amon famous that Apple prolonged its international patent license settlement with Qualcomm to March 2027. And, he mentioned, “We have now renewed long-term agreements with two important Chinese language smartphone OEMs.” 

With regard to its IoT enterprise, Amon mentioned the RedCap suitable Snapdragon X35 shall be in gadgets within the first half of this 12 months. Regardless of year-over-year income lower, “We proceed to consider that industrial edge gadgets with connectivity, high-performance computing and on-device AI will turn into one our largest addressable alternatives fueled by the secular traits of digital transformation. As such, we’re accelerating our investments in options, ecosystem, and broad channel enablement to place ourselves for progress whereas we navigate the industry-wide drawdown.” To his digital transformation level, Amon gave examples of Zebra Applied sciences and Toshiba demoing on-device generative AI for retail stock administration and different use instances, and Honeywell utilizing a Qualcomm-powered edge AI gadget for warehouse purposes.

In response to a query, Qualcomm CFO and COO Akash Palkhiwala gave some perspective on macro traits impacting IoT. “From an IoT stock perspective, what we have now seen is stabilization actually on the buyer facet…We had been one of many first to name out the weak spot in IoT, and now we’re seeing it undergo each on the commercial and the sting networking facet.” That mentioned, Qualcomm is guiding up mid to excessive single digit progress in IoT. 

Qualcomm’s automotive enterprise continues to growth with revenues hitting $598 million in Q1 this 12 months, up 31% from the year-ago quarter. Amon referred to as it “an essential pillar of our progress and diversification technique.” He referred to as out 75 new car fashions launched in 2023 that includes Qualcomm’s automotive tech which ranges from infotainment, superior driver help system and different programs that help the transition to software-defined autos. 

Again to Qualcomm’s Snapdragon X Elite platform sporting the Oryon CPU, the results of its acquisition of Nuvia. The CPU will first hit the market in PCs within the center a part of this 12 months, but it surely’s additionally central to Qualcomm’s broader diversification technique and push for on-device AI. Amon laid out the following steps. “As we take [Snapdragon X Elite] into cellular subsequent, we’re seeing important curiosity from our companions because it really turns into a management place within the market now throughout all cores, not solely graphics and AI but additionally CPU. And we’re not stopping there. Following smartphone, it’s going to enter our automotive enterprise. And we’re enthusiastic about what the group has achieved up to now. Oryon is de facto well-positioned to be the main CPU core within the {industry}.”

Click on right here for the Q1 monetary earnings launch.


Leave a comment