The last couple of years have taken its toll on many high-tech companies and industries. That includes the wireless and mobile industry and companies in the segment like Qualcomm, Huawei, Ericsson, Nokia, NTT, HTC, Samsung, MediaTek, IBM, Hewlett-Packard, Google, Dell, Broadcom, Texas Instruments and more. Some have been hit harder than others. How they are all dealing with this pressure is different.
The weak economy is not impacting all companies. Some of these competitors are still show strong growth and will likely continue doing business as usual going forward.
Qualcomm, Huawei, Ericsson, Nokia, NTT, HTC, Samsung, IBM and others
Of those who are impacted, there are different ways they are attacking this problem. These differences may mean some will perform better than others in the near future.
The term “slight-of-hand: is used to describe how magicians take your eye off the ball. Sometimes, business leaders use this technique to distract investors, industry watchers and the marketplace.
They try and put a happy face on the tough times they are currently experiencing.
Companies distract from troubles of weak economy
If we pull the camera back to get a longer-term, historical perspective, many of these companies will weather the storm. They have in the past and they will this time as well. It’s just a matter of time and preparation to limit the damage.
However, even the best prepared companies are still experiencing the economic slowdown and will still experience problems in the next few years.
That’s why they often try to shift attention away from the weak areas and focus on something new, different and more exciting.
The growth curve rises, crests, then falls
The growth curve is something every CEO needs to deal with. Every product, service or technology ride on a growth wave. It rises, crests and then falls. Some last longer than others, but every one of them has a lifespan.
Companies who successfully ride the current growth wave, need to introduce the next growth wave before the current one crests and falls. This keeps the engine running smoothly.
This is a smart way to run a growing company on an ongoing basis.
However, a weak economy complicates matters and that makes this concept even more important.
Qualcomm introduced concept car and Snapdragon Satellite at CES 2023
Example, at CES 2023, Qualcomm unveiled their concept car, showing their new focus on autonomous driving. They have many partners like Salesforce who are all focused on growth going forward.
The automotive cloud plays an important role in bringing the future to reality. This will continue to grow connecting more companies and technologies.
They also focused on their Snapdragon Satellite communications with their Iridium partnership. This let’s smartphones communicate with two-way messaging on a global basis.
These are two slices of the Qualcomm pie, and they can still generate exciting expectations for future growth.
The good part is these automotive and satellite segments are exciting and new and spark the imagination of investors, users, workers and executives.
The bad part is it does little to save them from the weak economy they are dealing with today.
Qualcomm is a quality company. I expect them to weather this storm. That’s why focusing on these new and exciting areas are a good move during economic stresses. However, getting through this current weak economy will continue to be taxing.
Expect companies to focus on exciting growth areas, not weak economy
This Qualcomm formula can be successfully used by other companies during times when they too are struggling.
Remember, this weak economy is not impacting all companies. The ones who are not impacted continue to show strong growth. The ones who are affected are feeling the stress. We should not expect to see things getting better until the economy improves globally.
Unfortunately, economic recovery and improvement could take a while. Until then, expect impacted players to continue to try and distract attention away from the problem areas and focus attention on new, exciting areas of innovation and future growth.
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