Qualcomm: "Growth Possible with Samsung Even Without Apple"

Samsung and Others Focus on High-End Android Smartphones
Revealed Development of PC Chips Targeting Apple
Stock Price Soars to All-Time High

[Asia Economy New York=Correspondent Baek Jong-min] Semiconductor company Qualcomm, specializing in communication chips, forecasted that even if its relationship with Apple ends, continuous growth would be possible through entry into the PC chip market, cooperation with Samsung Electronics, and supply contracts with BMW. Concerns over reducing dependence on Apple were alleviated, leading Qualcomm's stock price to reach an all-time high.

Qualcomm emphasized during its Investor Day event that its chips are being supplied to Samsung Electronics' latest smartphones.
[Photo by Baek Jong-min]

On the 16th (local time), Qualcomm held an 'Investor Day' event at Gotham Hall in Manhattan, inviting media including Asia Economy and Wall Street investors.

CEO Cristiano Amon said in his keynote speech, "Qualcomm can no longer be defined by a single market and a single customer." He projected that Qualcomm would supply only 20% of the communication chips needed for iPhones in 2023, despite currently supplying communication chips to Apple. It was expected that less than 10% of iPhones would use Qualcomm chips in 2024.

Qualcomm's outlook was interpreted as a signal that it is preparing in advance for a reduction in Apple's share amid Apple's expansion of its own chip usage.

Despite Apple's departure, CEO Amon expected the overall chip business to grow at least 12% by 2024. He asserted, "Qualcomm is at the starting point of one of the greatest opportunities in history where everything is connected through communication. We are uniquely positioned to grow not only in phones but also in various industries."

Qualcomm also announced a direct confrontation through its ARM-based PC chip business, which can compete with Apple's M-series chips.

James Thompson, Chief Technology Officer (CTO), projected that a new PC chip could be introduced in 2023. The new chip is expected to be designed by Nuvia, which Qualcomm recently acquired. Nuvia was founded by those who created Apple's A-series chips.

Apple is expanding the use of its M-series chips. As Apple replaces Intel CPUs used in MacBook laptops with its own M-series chips, semiconductor companies are feeling threatened.

Satya Nadella, CEO of Microsoft (MS), who is wary of Apple's rise, expressed satisfaction with the cooperation between Qualcomm and MS through a video message.

Qualcomm's strategy is to expand growth beyond communication chip-centered business into automobiles, PCs, and the Internet of Things (IoT).

Akash Palkhiwala, Qualcomm's Chief Financial Officer (CFO), explained that they would focus on the premium Android smartphone market.

Qualcomm cited Samsung Electronics' Z Flip3 and Z Fold3 as representative premium smartphones using their Snapdragon chips. Qualcomm also emphasized cooperation with Hyundai Motor Group and LG Electronics.

Qualcomm disclosed a supply contract for autonomous driving semiconductors with German automaker BMW. CEO Amon expressed expectations, saying, "BMW and Qualcomm will open a new era for automobiles through cooperation."

Qualcomm also expected IoT chip sales to grow from $5.06 billion this year to $9 billion in 2024.

Qualcomm showcased its cooperation with Oculus, a virtual reality experience device related to the rapidly emerging metaverse, and anticipated the metaverse as a new market for communication chips.

On this day, Qualcomm's stock price rose by 6%, touching $180 and reaching an all-time high. Qualcomm's stock price has been strong continuously following recent improved earnings announcements.