2024-01-31 23:02:34
The US chip manufacturer Qualcomm increased its sales more than expected in the past quarter. In addition, the global delivery of chips for the top-of-the-line cell phone Galaxy S24 was agreed with Samsung. Qualcomm shares rose 2.4 percent in following-hours trading. On Wednesday following the US stock market closed, the group reported a five percent increase in sales to $9.94 billion for its first financial quarter (as of December 24, 2023).
Analysts on average had expected 9.52 billion. A profit was forecast for the current quarter that was slightly above experts’ estimates. Qualcomm is benefiting as a new line of AI-enabled chips helps the company overcome last year’s smartphone slump.
Sales of chips for smartphones rose by 16 percent year-on-year to almost $6.7 billion. Business with the automotive industry even grew by 31 percent – but is still significantly smaller at $598 million.
Qualcomm is the largest supplier of chips to the smartphone market, which suffered its worst sales year in a decade in 2023. According to the consulting firm Gartner, the semiconductor market shrank by around eleven percent worldwide last year.
Qualcomm is pinning its hopes, among other things, on the “Snapdragon Elite X” chip announced a few months ago, which is being developed for computers with Microsoft’s Windows operating system. This processor is faster than Apple’s “M2 Max” in some applications. It uses less power than competing products from both Apple and Intel. It also receives special functions for artificial intelligence (AI).
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