Qualcomm still makes a lot of money despite the chip shortage affecting the whole market

Tram Ho

Shortages of components, including memory and processor chips, have boosted chipmakers’ revenue growth. Many firms have benefited from the current situation with impressive sales and profits. US chip maker Qualcomm is not behind that trend.

Qualcomm vẫn kiếm bộn tiền bất chấp tình trạng thiếu chip ảnh hưởng toàn thị trường - Ảnh 1.

In Q4/2021, Qualcomm recorded $10.7 billion in revenue , representing an impressive 30% growth year-over-year. From selling mobile chips, Qualcomm has earned more than 5.98 billion USD in revenue, 60% higher than the same period last year.

Qualcomm’s net profit amounted to $3.4 billion, 38% higher than the last quarter of 2020. Demand for mobile processor chips also increased by 42%.

Qualcomm added that the company’s profits are partly derived from selling chips to car manufacturers. Qualcomm earned $256 million from vehicle partners and grew 21% year-over-year.

The IoT division, which specializes in low-power chips, also recorded a 41% increase in revenue to $1.48 billion. Against this background, Qualcomm’s business also improved and in terms of royalties, it signed many agreements and the income from these agreements increased by 10% and revenue reached 1.81 billion USD. .

Clearly, revenue from other businesses of Qualcomm is as large as the money from selling patent rights or authorizing third parties.

The QCT division responsible for chip development and supply also saw revenue growth of 35% year-on-year to $8.85 billion. Revenue growth in this sector slowed down compared to the same period last year.

However, Qualcomm CEO Cristiano Amon said the positive quarterly revenue reflects the company’s confidence in its ability to increase component orders once the chip shortage ends. On the other hand, Amon added that demand is still exceeding supply, but Qualcomm can completely supply more chips to the market if possible.

Qualcomm vẫn kiếm bộn tiền bất chấp tình trạng thiếu chip ảnh hưởng toàn thị trường - Ảnh 2.

In the last quarter, Qualcomm’s revenue growth was largely attributed to the sale of processor chips for smartphones. It is not surprising that the revenue growth is up to 60% because this is still the key business segment of Qualcomm ever. In total, Qualcomm brought in $6 billion in revenue in the last quarter, up 42 percent year-over-year.

Unfortunately, Qualcomm’s auto business has not been able to get ahead and only performed quite modestly with revenue of $ 256 million in Q4/2021. The company is trying to attract major customers such as GM, BMW and Renault interested in Qualcomm’s platform when developing active driving systems.

Finally, the Internet of Things business also recorded impressive revenue growth, up to 41% and reached 1.5 billion USD.

Refer to Gizchina

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Source : Genk