Qualcomm reported that its automotive segment increased 35% year-over-year
Qualcomm beat market expectations in Q2 2024, with the company expecting between $8.8 billion and $9.6 billion in sales. Net income during the quarter was $2.33 billion, or $2.06 per share, compared to $1.7 billion, or $1.52 per share, in the year-earlier period.
Sales in Qualcomm’s handset business — its largest segment — rose 1% year-over-year to $6.18 billion, and in China, specifically, its quarterly revenue from Chinese phone makers jumped 40% from the year-earlier period. During an investor call, CEO Cristiano Amon noted that the market for premium smartphones is particularly hot right now.
“We are seeing the very first instances of on-device AI and Gen AI being launched in premium devices and that is resonating well with the consumer,” Amon continued, referring to the high-end handsets that company calls “AI-powered smartphones.” These devices house Qualcomm’s top tier chipsets and are capable of things like generative email completion, live translation and virtual assistants.
The company’s automotive segment also performed remarkably well, rising 35% year over year to $603 million, with expected consecutive double digit percentage growth in the current quarter. “From an automotive perspective … we’ve given out a target of greater than $4 billion revenue in fiscal ’26. And what you’re seeing is really our design win pipeline materializing into revenue on our way to that number,” commented Qualcomm Chief Financial Officer & Chief Operating Officer Akash Palkhiwala on the investor call. She further noted an increase in its automotive backlog from $30 billion to $45 billion over the course of 18 months.
Deviating from this trend of growth, Qualcomm’s IoT chip business declined 11% year over year to $1.24 billion.
Looking ahead, Palkhiwala said that Qualcomm is “excited” about the launch of its AI PCs, which will be equipped with Snapdragon X Elite and X Plus platforms starting in mid-’24.
