Qualcomm at the 2025 consumer electronics show
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Quarcom, which has long been known for long -awaited leadership in connection and mobile innovation, is driving a way to diversification, including movements to new areas that change games. Under CEO CRISTIANO AMON, the company utilizes connectionability, AI, and integrated platforms to reduce dependence on mobile phones, automobiles, industrial IoTs, edge computing, next -generation computing devices, etc. It is expanding to a high -growing market.
The company has a long -term vision based on diversification, but the reach beyond mobile phones is not new. In fact, for several years, Qualcomm is a transformational player in the automotive industry, and has been expanding the boundaries of innovation using the connection and the strengths of AI. Qualcomm is currently expanding its impact on the new AI -compatible edge and industrial IoT market, and hopes to solidify as a leader of segment, a new focus of digital transmission.
Qualcomm diversification strategy
On an investor’s day in December, Amon has expanded the long -term strategy of Quarcom, focusing on aggressive diversification. Amon told the audience that the company was aiming to achieve 50-50 revenue split between the mobile phone and the non -hand set market by the end of 10 years.
Diversification is not a new concept of Qualcomm. The company has already had a strong presence in cars and entered the AI PC market last year. However, it is currently used as a template to expand the success of automobiles into the edge and industrial IoT market. The Qualcomm approach is built on four important pillars.
Technology leadership: A robust portfolio for advanced AI functions, chipsets and software solutions. Scalability: A module type and adaptable solution that meets the needs of various industries. Diversification of revenue: Expanding to a non -hand set market to balance the opportunity to grow. Disciplinary execution: Balance and operation efficiency of investment in new opportunities.
Automotive momentum
One of the biggest success stories of Qualcom other than mobile phones is the rapid rise in the automotive industry. Snapdragon Digital Chassis, a integrated platform that combines connection, digital cockpit system, and Advanced Driver Assistance Systems (Advanced Driver Assistance Systems), has positioned Quarcom as the leader of this sector.
The key to Quarcom’s success is an approach that handles vehicles as computing platforms. This allows OEM to convert cars to digital products, which makes the Qualcomm’s hardware software integration an important differentiation factor. This is an approach that resonates with the automotive industry.
At an investor’s day event in December 2024, Quarcom revealed that Pipeline, a car design, has grown from $ 13 billion in 2021 to an impressive $ 45 billion in 2024. 2029 and $ 9 billion by 2031. This growth reflects the expansion of the car TAM from $ 50 billion to $ 100 billion and the competitiveness of the Quarcom sector.
The recently reported quarter bear gave this. The company reported that in the fourth quarter of the fourth quarter of 2024, automobile revenue reached $ 899 million, up 68 % year -on -year. In addition, it was one -fifth consecutive quarter of the segment. We predicted 50 % growth in 2025.
Qualcomm is a luxury car manufacturer such as Mercedes-Benz and BMW, and has won some remarkable car design. Qualcom’s Snapdragon platform is used for advanced infotainment systems. Qualcomm also has a wide range of engagement with Snapdragon digital cockpit, automatic connection, and Cadillac incorporated into vehicles.
Enlarge to Edge and IoT market
Edge computing does not depend on the concentrated cloud system, but is revolutionized in how to process the data by bringing the computer closer to the source. The edge computing, which supplies fuel to the connection between AI and 5G, optimizes operational efficiency by reducing latency, increasing privacy, and directly bringing AI to where data is generated and used.
These benefits are important for industrial IoT applications in an environment where real -time decisions are indispensable. Qualcomm has a deep expertise in mobility, connection, and AI, and is well -located to utilize this trend. The company’s IoT segments, including consumers, networking, and industrial use, are expected to grow $ 5.4 billion in 2024 and grow to $ 14 billion by 2029.
This opportunity is important, but Qualcomm is facing strong competition with companies such as NVIDIA and Intel, which have terrible expertise in GPU and AI infrastructure. In addition, to meet the needs of a variety of vertical segments, it is necessary to have a seamless integration of hardware and software. This is an issue that is facing in the car section.
In order to make this competitive landscape more appropriately navigate, Qualcomm is applying a successful car playbook. One of the important Tennets of the playbook is to promote partnerships, but another provides full -stack end -to -end solutions that customers can easily adapt to. The company is already running these initiative.
Qualcomm has been collaborating with Accenture for many years to implement Edge AI and IoT solutions for more smart manufacturing, energy optimization, and strengthening retail experiences. By combining the Qualcomm’s hardware platform and the expertise in the ACCENTURE system integration, the two companies are working together to provide industry -specific digital conversion roadmaps.
In addition, Qualcomm is working with Deloitte to promote industrial IoT solutions. This collaboration integrates the Qualcomm’s chipset technology and AI functions with Deloitte’s strategic consulting and deployment framework. This partnership focuses on accelerating the recruitment of smart factories, logistics, and edge computing in real -time analysis.
Analyst take
Qualcomm’s diversification strategy is an ambitious but indicable but necessary to enter a high -growth market. Focusing on automobiles, industrial IoTs, and edge computing, the company can use its strengths to establish a status as an important Ineveller led by AI. The integrated platform, ecosystem partnership, and a proven track record provide a strong foundation for sustainable growth.
Edge and cars are very competitive segments. NVIDIA is the most comparable competitors in the automotive space. NVIDIA stated that during the latest revenue calls, automotive segments have created $ 449 million, an increase of 72 % year -on -year. In a recent keynote speech at the consumer electronics show in 2024, NVIDIA CEO Jensen Huang long talked about automobiles that seem to be an extension of NVIDIA’s robot engineering strategy. For NVIDIA, a car is just another robot.
Despite the competition, Qualcomm is well -located for success. It has a long history of leadership and a long history to enable OEM -specific platforms. It also demonstrates that the product is excellent outside the mobile phone business. Profit and pipeline are growing strongly with these new segments, and CEO’s Christia Noamon is publicly committed to diversified strategies.
Qualcomm has a vehicle we drive, and a powerful play that is set so that the connected device to define modern life and the system are powered. As we expand our horizons, we are likely to grow and have the possibility of impact on industry. Qualcomm, which has ambitious goals and clear visions, redefines its role in technology situations as well as diversifying.
