[Asia Economy Reporter Yujin Cho] American semiconductor chip manufacturer Qualcomm posted a surprise earnings report for the first quarter of this year, driven by a surge in smartphone demand.
On the 28th (local time), according to U.S. economic media CNBC and others, Qualcomm's revenue for the first quarter of this year (Qualcomm's own fiscal second quarter) surged 52% year-over-year to $7.93 billion, surpassing market expectations of $7.62 billion.
Adjusted earnings per share also exceeded market expectations, coming in at $1.90 compared to the expected $1.67.
Qualcomm explained that the rapid increase in smartphone demand due to recovery from COVID-19 drove the revenue growth, especially noting that the sharp rise in smartphone shipments within China was a key factor behind the strong performance.
The Technology Licensing division, which includes patent royalties from mobile headsets and others, posted revenue of $1.61 billion, a 51% increase year-over-year, significantly exceeding market expectations of $1.35 billion.
The Internet of Things (IoT) division also saw revenue growth of over 71%, achieving more than $1 billion in revenue for two consecutive quarters.
Steve Mollenkopf, CEO, said, "The first quarter of this year was a very strong quarter," adding, "We saw a strong combination in the product business through strengthened licensing revenue."
This earnings report came after the announcement that current CEO Mollenkopf would step down and Cristiano Amon would be appointed as his successor.
Qualcomm expects to generate revenue between $7.1 billion and $7.9 billion in the second quarter as well.
After the strong earnings announcement, Qualcomm's stock, listed on the Nasdaq, rose more than 7% in after-hours trading.
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