Qualcomm Inc. (NASDAQ:QCOM) has been on an upward trajectory since the beginning of the month, and in the last trading session, the company gained 1.47% to close the day at $53.12 following the indication that the chip maker was expanding its business beyond core mobile.
Promising revenue from non-mobile segments
Qualcomm’s Vice President Pete Lancia stated that since they are focused in chip making which is important in technological innovations such as IoT the company was considering expanding into such segments such as 5G, automotive and IoT. Pete was speaking in an interview with wit6h IBD in which he laid out the company’s strategic initiatives.
Qualcomm has been advancing revolutionary technologies that impact on devices beyond mobile into different devices that consumers use. In 2018 although the Qualcomm did not give revenue guidance, it is estimated that out of the $22 billion that the company generated $5 billion of the revenue was from segments beyond core mobile. These segments are growing and present an excellent opportunity for the company to venture into apart from their mobile devices and smartphone business.
Industrial IoT considered having great potential
Pete however, indicated that the company has not estimated how much each segment is worth and what amount of revenue they will generate. Because consumer electronics is rapidly growing it is seen as a segment that will drive evolution in most of the non-mobile segments that Qualcomm wants to venture into that is automotive, IoT as well as leading the transformation of 5G. The company expects to leverage this opportunity and apply its computing and connectivity in development to bring the much-needed dynamism in different industries.
Most things are becoming smarter as the world evolves and thus the company considers Industrial IoT as the most significant segment that can bring more revenue. However, the 5G transformation is considerably an interesting segment that will change technology because of its capability to enhance most tech devices. The company in collaboration with other companies have been working to build a 5G network to launch in the first half of 2019.