CEO: Plan to grow market to $700 billion “remains on track, and I’m very excited for the future of Qualcomm”
Last year Qualcomm laid out a plan to leverage its core expertise well beyond the handset market it’s best known for to grow share in complementary sectors; specifically the idea is to go from a $100 billion total addressable market to a $700 billion TAM in the next decade.
Based on Q2 financials reported yesterday, the plan is working as the San Diego-based technology company showed across-the-board double-digit growth with a strong outlook and despite headwinds associated with supply chain entanglements, geopolitical concerns, COVID-related uncertainty, and other externalities.
To the numbers: Total revenues hit $11.164 billion up 41% year over year. By segment, handset revenue grew 56% to $6.325 billion, RF front-end grew 28% to $1.16 billion, automotive grew 41% to $339 million, and IoT grew 61% to $1.724 billion.
Speaking on a Wednesday earnings call, CEO Cristiano Amon said the company “is at the intersection of transformative trends that are generating demand for our broad technology portfolio across virtually every industry. This is creating strong growth and diversification opportunities beyond handsets.”
Amon called out trends around hybrid work, mobile/PC convergence, blending of physical and digital spaces (the metaverse), industrial transformation, and distribution of connectivity and computing, including artificial intelligence, to the network and/or enterprise edge.
These factors, Amon said, “are driving our financial outperformance in a greater than 7x addressable market expansion to approximately $700 billion in the next decade. Our one technology road map across wireless connectivity, advanced edge processing and power-efficient AI is incomparable across our peer group. In fact, advanced processing and artificial intelligence are the fastest-growing silicon content areas for Qualcomm. As such, we can no longer be defined just as a communications company serving one industry, rather, Qualcomm is a leading connected processor company for the intelligent edge serving multiple new end markets and enabling the growth of the cloud-connected economy.”
Click here to view the full earnings release; and here for a replay of the earnings call.
