Qualcomm Inc. (NASDAQ:QCOM) after surging at the beginning of the month the stock dipped towards the end of the week losing 0.51% in the last trading session to close at $50.83.
The stock surged at the beginning of the month following the announcement that the company was expanding its products beyond core mobile business into 5G, automotive and IoT.
Expanding beyond the core mobile business
Pete Lancia the Qualcomm Vice president in an interview with IBD shared on the company’s strategic initiatives towards the expansion of IoT and realization of 5G network. Qualcomm is mostly known for its operations in mobile and the Vice President indicated that the company has been advancing technological innovations that are significant to both mobile devices as well as other devices around the consumer
In FY2018 Qualcomm had revenue of $22 billion and over $5 billion of the total revenue was from non-mobile segments. Pete stated that the non-mobile segments are becoming a vital part of their business as they look to expand beyond smartphones and mobile devices. The company did not, however, give revenue guidance for the FY2018.
Expansion into IoT and 5G
Although the segments outside mobile did bring revenue the company has nonetheless not segmented on which segment will bring what amount of revenue. However, Pete indicates that consumer electronics is a massive segment they are looking into as it is currently driving the evolution of all aspects of from IoT home devices, automotive as well as 5G. Leveraging this segment is a perfect opportunity for the company to apply connectivity and computing in transforming various industries.
Industrial IoT is the most significant segment that Qualcomm considers because the world is evolving and more things are becoming smarter. Therefore industrial IoT is a crucial segment for the company to take advantage of the company’s capabilities and apply in various segments.
5G network is equally an interesting segment that will revolutionize technology owing to its capability to support almost everything. Qualcomm has been working with other companies in developing 5G network whose launch is scheduled to take place in Q1 2019.