Qualcomm reports $9.9 billion in revenue and extended deals with both Samsung and Apple،
Qualcomm, one of the leading players in the chipset manufacturing industry, has shared its financial results for the first quarter of fiscal 2024. The company reported total revenue of $9.9 billion, an increase of 5% from the $9.4 billion reported in the first quarter of 2023.
Cristiano Amon, Chairman and CEO of Qualcomm, expressed satisfaction with the strong quarterly performance, stating:
We are extremely pleased to report strong quarterly results, with revenue and EPS exceeding the upper end of our guidance.
The report highlights that the company achieved $6.6 billion in mobile phone chip sales, an increase of 16% from $5.7 billion the previous year. The Snapdragon 8 has become a leading AI platform for flagship smartphones, with Snapdragon 8 Gen 3 setting a new standard for on-device Gen AI experiences. It powers flagship Android devices launched and scheduled to launch this year.
Samsung's recent debut of the Galaxy S24 series, packing the Snapdragon 8 generation 3 in the United States and other markets, is a good example of the chipset's capabilities, as the series is packed with AI-based features and tools. Given this, it's no surprise that Qualcomm's Snapdragon partnership with Samsung persists, marked by an extended multi-year agreement regarding Snapdragon platforms for flagship versions of Galaxy smartphones.
Image credit – Qualcomm
In more important news from the first quarter earnings report, Qualcomm and Apple have shaken hands to extend the licensing agreement signed in 2019 for two more years, which now extends to 2027. It appears that The move fits with buzz that Apple's 5G modem technology isn't quite ready for the spotlight.
Apple has been on a mission to create its own 5G modems to replace Qualcomm's for some time now. In 2019, Apple bought Intel's modem division in a big billion-dollar deal. This acquisition allowed Apple to reclaim more than 17,000 patents and hire more than 2,200 employees from Intel. Despite this progress, the Cupertino team has yet to crack the code.
Last year, reports indicated that the development of Apple's 5G modems had been quite frustrating for the company's engineers and executives. Insiders revealed that the prototypes failed to match Qualcomm's modems in terms of performance and efficiency.
Apple hoped to launch devices with its own 5G modems this year. However, recent deal renewals with Qualcomm indicate that the tech giant is still far from achieving this goal.
