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Qualcomm expects half a billion 5G smartphones to be shipped next year
Qualcomm Technologies has reported the results of the fourth quarter of the fiscal year, at the same time changing the reporting structure. It now shares revenue from smartphone processors, modems, automotive components and the Internet of Things. The company looks with optimism in the next year, predicting the appearance on the market of 500 million smartphones with support for 5G networks.
Image Source: AFP, Getty Images
Qualcomm’s revenue in the reporting period exceeded analysts’ expectations, reaching $ 8.3 billion, and also exceeding the results of the same quarter last year by 73%. The QCT semiconductor division posted 38% revenue growth to $ 5 billion, while licensing fees brought the QTL division 30% more than a year earlier – $ 1.5 billion. A separate mention is made of the amount received from Huawei Technologies as a result of the agreement reached between the companies – $ 1.84 billion.
Image source: Qualcomm Technologies
Qualcomm wants to convince investors that it is not content with just the smartphone segment. Automotive and the Internet of Things brought the company $ 3.67 billion in the past fiscal year, or approximately 22.23% of total revenues. Qualcomm forecasts for the next three years, expecting an average of 10% increase in revenue annually.
Image source: Qualcomm Technologies
The bulk of the revenue will continue to come from chips for smartphones, in this area revenue will grow by 10% per year, modems will bring about half as much, but the growth rate here will reach 12% per year. Revenue in the automotive segment will grow at the same rate, and the Internet of Things segment will come to the second place in terms of revenue in a couple of years with 7% annual growth.
Another change in Qualcomm’s reporting is related to the decision from next quarter to refuse to publish the forecast for the number of modems sold. Last quarter, the company managed to sell 162 million related products, which is in line with the upper bound of the forecast. If by the end of the current calendar year Qualcomm expects the global smartphone market to shrink by 5%, then from next year it expects it to increase by 8-9%.
Speaking separately about smartphones with 5G support, they will be shipped from 175 to 225 million units in the outgoing calendar year, as predicted by Qualcomm, and in the next this number will range from 450 to 550 million units. Qualcomm expects to generate $ 7.8 to $ 8.6 billion in the coming quarter. Favorable forecasts had a corresponding impact on investors, Qualcomm share price in the additional trading session rose 12%.