Qualcomm is one of a very few companies world-wide in the spaces of 5G, networks, handsets, wireless and connected devices. Every company, in every industry has experienced a chip shortage this past year. The good news is Qualcomm has not only held their own, but they are predicting a rise in chip sales for 5G phones going forward.
That is good news for every company in the United States and in fact, worldwide. So, let’s take a closer look at the chip space and see if the worst of the chip shortage is finally over and if recovery has begun.
Qualcomm is the largest supplier of wireless phone chips, world-wide. They are the global leader in 5G wireless. They supply chips to smartphone makers like Apple. Qualcomm chips in iPhones and Android devices connect users to the wireless data network.
Chip shortage impacts every company in every industry, worldwide
And chips go beyond wireless. Chips are one of the most important components for every product and service in our digital world. Every company in every industry and every product and service relies on chips.
We think of Qualcomm as a wireless network builder, but they are also in the chip business. They use chips in their work and they supply chips to a wide variety of companies in different industries.
So, they understand the importance of getting the chip marketplace back on a strong growth track.
The good news is even with the chip disruption of the past year, Qualcomm is still showing strong growth in this sector.
Chip shortage has impacted every company and every industry
The current chip shortage has had a wide impact.
As an example, the automobile industry is hit hard. This shortage is causing fewer new cars to be built. This shortage not only makes it more difficult to find a new car, but it also increases the price.
Next, because there is a shortage and price increase in new cars, this is causing more attention to be paid to the used car market. That’s why used cars have seen a significant price hike and model shortage during the last year as well.
So, the chip shortage is impacting the industry and the consumer in every aspect of the automobile industry.
Now, duplicate that disruption in every other company in every other industry and you can start to get the sense of what is happening in the market today.
That’s why the current chip shortage is important and must be solved. It started with Covid-19 a year and a half ago. Today, it has less to do with the coronavirus. Yet, the problem is still with us for a variety of reasons.
Chip shortage is easing
The good news is the shortage is easing. That means the problems will end. And the sooner, the better.
That’s why the optimism from Qualcomm is an important key to finding our way out of this mess.
Qualcomm needs chips for their work with 5G networks, smartphones and tablets, connected cars, telehealth and so much more. Not only for themselves, but for the companies they work with.
Qualcomm optimistic on chip shortage for 5G and connected devices
Qualcomm is key to every industry moving forward.
Not only are they a large and powerful competitor, but they are also a leader in their space, both domestically and globally.
In fact, they can be seen as a harbinger of things to come.
So, when Qualcomm says they see growth ahead in the chip market for 5G wireless, automated driving, healthcare and other spaces, that is good news.
This is not just good news for Qualcomm as a company, but also good news for the entire wireless space. And in fact, good news for every other company in every other industry as well.
Chip shortage will be remembered as temporary “bump in the road”
The chip shortage has hit us hard over the last year, but it is only a temporary bump in the road. And just as we are getting a handle on the coronavirus, which created the shortage in the first place, we are finding out way out of this sticky quagmire.
The chip industry has been struggling to keep up with growing demand for quite a long time. Covid-19 threw the give and take out of balance. Now, we have to catch up. However, that’s exactly what we are seeing.
So, recovery will not be overnight, but it is occurring and that’s great news.
That’s why looking ahead, even while we continue to wrestle with Covid-19 for years to come, as the chip shortage eases, every industry will continue to get back up to speed.
