Qualcomm Inc. (NASDAQ:QCOM) Considers Segments Outside Core Mobile Such As IoT, 5G And Automotive As Significant Growth Aspects To Take On Rivals
Qualcomm Inc. (NASDAQ:QCOM) lost 0.24% in the last trading session to close the day at $52.99. This comes at the heel of the company indicating they are expanding beyond the core mobile segment to go head-on with rivals. Pete Lancia, the Vice President of Qualcomm, sat in an interview with IBD to provide insight into the company’s strategic initiatives.
Non-mobile segments earned $5 billion in FY2018
The Vice president indicated that besides the invention of mobile technology breakthrough other segments are driving Qualcomm’s growth In the Q4 FY2018 the company earned over $5billion in revenue for segments outside of core mobile which is excellent over 70% over two years. These segments are becoming a significant part of Qualcomm’s business as the company diversifies away from being leaders in just smartphones and mobile.
The company did not disclose its revenue guidance for FY2018, but from the FY2017 Qualcomm earned between $22 and $23 billion and for the non-mobile segment it is estimated to be around $5 billion for FY2018. However, there is room to grow on the revenue in the different segments that the company is involved although Qualcomm has not specified which segment will bring more growth between IoT, 5G and automotive.
IoT and 5G could be the most significant segments
Currently mobile is the largest platform driving growth at Qualcomm but the consumer electronic platform is driving change in every aspect ranging from automotive, IoT, smart home devices as well as the changing computing segments which is an excellent opportunity to leverage using the company’s core technology and apply it in computing and connectivity to transform various industries.
The world is evolving fast, and most things are becoming smarter with IoT leading the charge. Qualcomm considers industrial IoT as an essential segment that can drive revenue growth in the company. However, currently, 5G is seen as an important segment because it can enhance almost everything thus revolutionizing technology.