Qualcomm last Wednesday, January 31, published its financial results for the quarter ended December 24, 2023.

During the mentioned period, the chip manufacturer’s net income amounted to $2.77 billion. This figure is 24% higher than the result recorded for the same period in 2022.

Sales of the company’s chips intended for use in mobile phones for the quarter that ended December 24 showed an increase of 16% year-on-year.

In the current quarter, Qualcomm expects adjusted earnings in the range of $1.73 to $1.93 per share on revenue of $8.9 billion to $9.7 billion. Consensus forecasts, according to LSEG, called for earnings of $2.25 per share on revenue of $9.3 billion.

Qualcomm is best known as a manufacturer of chips for smartphones. These microcircuits are used as modems that connect mobile phones to cellular networks and as processors at the heart of high-end Android devices.

Nowadays, the company, the current CEO of which is Cristiano Amon, is working on introducing chip technology to markets that go beyond smartphones, including virtual reality headsets, cars, and personal computers. The firm continues to be the largest supplier of microcircuits for mobile phones. It is worth noting that over the past two years, the market for these chips has shown a sharp decline.

Qualcomm said it shipped $6.69 billion worth of microcircuits during the quarter that ended December 24. This figure is 16% higher than the result for the same period in 2022. The dynamic of Qualcomm is a positive signal of the gradual recovery of the smartphone market, which has shown a downward trend over the past two years. At the same time, the chip manufacturer does not expect global mobile phone sales to show significant growth in 2024.

Cristiano Amon said that the Android market will stabilize after 2023, which, according to him, was a year of correction.

The new Samsung Galaxy smartphones, which were presented last month, are equipped with Qualcomm processors. The chipmaker expects the collaboration with the mentioned mobile phone brand to continue for several years as part of the new deal. Qualcomm rules out the possibility that Samsung will abandon these processors in favor of its own microcircuits.

The company’s business under the management of Cristiano Amon in the Internet of Things area includes chips that Meta uses in its virtual reality headsets. Qualcomm’s sales in this segment fell 32% year-on-year last quarter to $1.13 billion.

The chip manufacturer hopes that cooperation with car suppliers and vehicle makers will significantly improve its financial performance. The start of Qualcomm’s large-scale operations in this area is likely to be slow. Automotive parts have a long qualification cycle due to regulatory requirements and industry needs.

Qualcomm’s nascent business in the mentioned sphere recorded sales of $589 million last quarter. This indicator increased by 31% year-on-year.

QCT, Qualcomm’s chip sales unit that includes cars, the Internet of Things, and mobile phones, totaled $8.42 billion last quarter. This indicator showed an increase of 7% year-on-year.

The company’s profitable licensing business, called QTL, recorded a revenue of $1.46 billion last quarter, down 4% compared with the result for the same period in 2022.

During the last quarter, Qualcomm spent $800 million on share repurchases and $900 million on dividends.

As we have reported earlier, Qualcomm Announces New Chip for Mixed Reality.