Qualcomm CEO Cristiano Amon has credited increased adoption of 5G and the changing landscape of the devices market in the wake of the decline of Huawei’s business for helping drive increased revenue and profit in its third quality earnings.
Speaking on its fiscal Q3 (the three months ended 27 June) conference call, Amon, who took charge at the start of July, noted in addition to continued momentum in its smartphone segment, Qualcomm was on-track to deliver $10 billion of annual revenue from RF front-end, IoT and automotive chips.
As part of its business diversification strategy Qualcomm aims to “lead the evolution of the connected intelligent edge” including aiding connectivity across cars; smart home; enterprise deployments including factories; PCs; extended reality; and wearables.
“Our solutions are fuelling the connected intelligent edge that is enabling the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates,” he added.
Amon noted in its mobile division, key drivers in fiscal Q3 had been the continued growth of 5G and “changing OEM landscape”.
He added the company’s addressable opportunity had been increased as its customers took spots in the upper part of the devices market following Huawei’s decline.
Qualcomm currently supplies components for all of the top five smartphone manufacturers by shipments (as of Q1) and has a deal in place with former Huawei unit Honor.
For its fiscal Q3, Qualcomm booked net profit up 140 per cent year-on-year to $2 billion on revenue of $8.1 billion, 65 per cent higher.
However the rapid increases were partly due to the comparable period of 2020 being particularly badly hit by Covid-19 related challenges.