Jakarta, Selular.ID – Qualcomm executives expressed confidence in the company’s ability to snatch chipset market share from Huawei in the last half of this year. This confidence is driven by strong performance, as reflected in the acquisition of profits and revenues in Q1 of the fiscal year 2021 (calendar Q4 2020).
Regarding revenue, CFO Qualcomm Akash Palkhiwala explained that until now Huawei is a “very large OEM” whose chipset demand is met by its HiSilicon unit.
However, with Huawei’s fast dropping smartphone shipments, Palkhiwala noted that Qualcomm is poised to pounce on an estimated 16 percent share of the company’s chipset market, marking this as a “significant growth opportunity”.
Earlier, Qualcomm President Cristiano Amon highlighted the benefits expected for the high-level platform and premium segment as a revenue-generating segment.
Palkhiwala noted that the recently announced Qualcomm Snapdragon 888 chipset has been selected for more than 120 device designs.
Net income more than doubled year-on-year to $ 2.45 billion and revenue increased 62 percent to $ 8.2 billion.
Handset sales increased 79 percent to $ 4.2 billion; Front-end RF grew 157 percent to $ 1.1 billion; IoT rose 48 percent to $ 1 billion; and autos rose 44 percent to $ 212 million.
License revenue grew 18 percent to $ 1.6 billion. Qualcomm estimates revenues of between $ 7.2 billion and $ 8 billion for the current quarter.
Qualcomm is the world’s largest supplier of chips that help mobile phones connect to cellular data networks, providing chips to Apple Inc and other handset makers.
Even though it is still the dominant player in the mobile processor industry, recently the aggressiveness of its closest competitors such as MediaTek continues to undermine the Qualcomm market. A report from Counterpoint reveals that more than 100 million cellphones were sold in Q3 2020 with MediaTek getting the most share.
According to the report, MediaTek captured 31% of the market share chipset Global mobile phones in Q3 2020. Although not at the top of the 5G category, the Taiwanese company overtook Qualcomm with a 2% growth and also posted an annual growth (YoY) of 5%. With this achievement, MediaTek received the title of vendor chipset biggest for the first time beating fierce rivals Qualcomm.
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