Qualcomm wants to diversify its offerings and reduce its dependency on the mobile handset market
At its 2024 Investor Day, Qualcomm outlined ambitious financial targets in several emerging growth areas as part of its larger strategy around reducing its dependency on the mobile handset market.
Specifically, the chip maker has set out to achieve a combined $22 billion in annual revenue from its automative and IoT segments by its FY29, with $8 billion of that coming from automotive and $14 billion from IoT. For comparison, these segments netted a combined $8.3 billion in FY24.
Qualcomm is also targeting $4 billion each in PC and industrial revenues by the same year. The expectation for its XR business is slightly more modest at $2 billion in revenues by FY29, while the remaining IoT business is targeting $4 billion in revenues.
The company saw $24.9 billion in revenue from its handset segment in its latest financial year.
Qualcomm president and CEO Cristiano Amon said the company’s “focus on diversification and industry-leading technology roadmap has significantly strengthened the company’s growth profile.”
He added: “As generative AI accelerates demand for our technology and we become increasingly relevant across multiple industries, Qualcomm is well positioned to address a $900 billion opportunity.”
Qualcomm’s success in the automotive segment, specifically, can be somewhat attributed to the 2022 launch of Snapdragon Digital Chassis, which comprises technologies for digital cockpits, car-to-cloud connectivity, an auto connectivity platform and an ADAS/autonomous driving platform. The year it was announced, the company said it is expanding its total addressable market to $700 billion by the end of the decade.
This August, Qualcomm saw its fourth consecutive quarter of record revenues in its automotive business, with revenues hitting nearly $9.4 billion for the quarter, up 11% year-on-year, and earlier this month, the company posted fiscal fourth quarter revenue of $8.7 billion, which is said was driven by its handsets, IoT and automotive segments.
