Qualcomm announced that it expects to generate an additional $22 billion annually by 2029 thanks to its diversification into markets beyond smartphones. This plan represents a key milestone in the strategy of CEO Cristiano Amon, who took office in 2021 with the goal of reducing dependence on mobile phones.
New sources of income
- Chips for PCs: They are expected to generate $4 billion annually. Qualcomm recently launched its Snapdragon X processor for Windows devices, marking its entry into this sector.
- Automotive: Automotive segment revenue could grow 175% to reach $8 billion annually in 2029, of which 80% is already secured through current contracts.
- Industrial and XR chips: Qualcomm sees $4 billion annually coming from industrial chips and $2 billion from XR headphone chips.
- Other devices: Products such as wireless headphones and tablets will bring in an additional $4 billion.
Reducing dependence on smartphones
In fiscal 2024, the smartphone chip business accounted for 75% of Qualcomm’s revenue, at $24.86 billion. However, the company is preparing for the possibility that Apple will stop purchasing its iPhone components in 2027. Qualcomm assured investors that its new business lines will offset any losses.
Outlook and performance in the market
Qualcomm has been a key player in the mobile industry for the last decade, with essential modems and processors in high-end Android smartphones and iPhones. Although its shares are up 16% this year, they lag the Nasdaq index, which has gained 26%.
Amon emphasized that the technology developed by Qualcomm is relevant to various industries, and that this diversification will allow the company to maintain sustained long-term growth.
Qualcomm’s strategy to expand in PCs, automobiles and extended reality (XR) reaffirms its commitment to leading in technological innovation and revenue diversification.
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