Qualcomm Falls Short in Revenue; Profit Beats ExpectationsBy MBN Staff | Thu, 02/04/2021 - 10:46
Qualcomm reported revenue of US$8.24 billion during its 1Q21, up 62 percent year-on-year but still below analyst estimates of US$8.27 billion. However, sales of the world’s largest smartphone chipmaker increased 63 percent year on year, while profits grew 119 percent. Qualcomm's business has been driven by 5G smartphones and an increase in electronics consumption during the pandemic. The company's QCT chip division reported that sales in the quarter were up 81 percent year-on-year.
Christian Amon, recently appointed as the company's Chairman, said on Wednesday in a call with investors that if it were not for the global semiconductor shortage, revenues would have been higher. “We have seen, I think, probably shortages across the entire industry,” Amon pointed out.
Qualcomm started providing 5G modems for iPhones last year. However, in December, Apple said its transition toward building its own modems. “This year, we kicked off the development of our first internal cellular modem, which will enable another key strategic transition,” noted Apple's Senior Vice President of Hardware Technologies, Johny Srouji.
Back in January, Qualcomm announced that it planned to acquire chip startup NUVIA for US$1.4 billion to further strengthen its technology. “Creating high performance, low-power processors and highly integrated, complex SoCs is part of our DNA,” said Jim Thompson, Chief Technology Officer of Qualcomm, in a statement. “Adding NUVIA’s deep understanding of high-performance design and integrating NUVIA CPUs with Snapdragon will take computing performance to a new level and drive new capabilities for products that serve multiple industries.”
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