On Tuesday, smartphone maker c said it expects to generate revenues of $22.00 billion annually from new markets by 2029 as it diversifies its offerings.
CEO Cristiano Amon reiterated his pledge during the firm’s November 19 investor day, which he took over in 2021. He vowed to improve the company’s liquidity and stability by minimizing its dependence on the smartphone segment.
Qualcomm has grown massively in the past decade, with gains of 13.88% year-to-date and 29.67% year-over-year. Its modems and processors have become integral to high-end smartphones, including Google Android devices and Apple iPhones.
However, Amon has consistently cautioned that these major clients could stop ordering Qualcomm parts as early as 2027. Analysts support his stance, given that both tech giants have ramped up their research and development of in-house chip production.
For the fiscal year 2024, ending September 29, the California-headquartered chipmaker’s handset business posted sales of $24.86 billion. This figure represented roughly 75.00% of Qualcomm’s chipset-related revenues.
In June, the firm launched Snapdragon X, its first PC processor for Windows devices. Amon predicts the PC segment will produce yearly sales of $4.00 billion by 2029, 18.18% of the $22.00 billion mentioned above.
Lastly, Amon expects automotive revenues to expand by 175.00% to $8.00 billion annually within five years.
Smartphone AI Remains a Critical Qualcomm Endeavor
Qualcomm reassured investors that its expansion into other markets would not compromise the growth of its smartphone segment. It remarked that developing modems and chips supporting local generative AI (GenAI) use is a top priority.
Amon revealed that the company is working on mobile chips capable of running advanced GenAI features without help from large server farms. This project would eliminate the need for cloud-based AI, which Nvidia processors typically power.
The Qualcomm CEO emphasized that last year, a user could only run GenAI apps by processing them on the cloud. But this year, select smartphone models already could operate simple AI features without using the cloud, albeit at a limited capacity.
