Qualcomm posted robust handset chip sales in its fiscal Q3, with revenue up 12 per cent to $5.9 billion in a quarter CEO Cristiano Amon (pictured) previously expected to suffer from a slight seasonal downturn.

Its Q3 (covering the three months to 23 June) is typically a slow period for handset sales ahead of new device launches later in the year.

The results seem to indicate Qualcomm has largely rebounded from a post Covid-19 (coronavirus) slump over the past two years.

The CEO stated the increase in handset chip revenue is due to the company scaling its products across premium Android devices and greater than 50 per cent year-on-year growth in revenue from China-based OEMs.

He noted Qualcomm recently signed a key long-term licencing agreement with Honor.

Amon also stated the company’s licence to export products to Huawei, which was set to expire in late calendar year 2024, was revoked on 7 May. He said the change will impact Qualcomm’s revenue in both the current quarter and Q1 of fiscal 2025.

Q2 numbers
Amon has been on a journey the last few years to broaden its product portfolio beyond chips for smartphones, which is reflected in its automotive sector revenue surge of 87 per cent to $811 million.

On the downside, the company’s Internet of Things sector – comprised of lower-cost chips – contracted 8 per cent to $1.3 billion.

The IoT line also includes the company’s new PC chip for Windows laptops, called Snapdragon X Elite, which it launched with Microsoft on 18 June.

“We are very pleased with the initial response with several models sold out at retailers and online,” Amon stated. He noted the company’s retail presence is expected to expand to more than 60 retailers across 25 countries in the coming months.

Qualcomm’s total revenue rose 11 per cent to $9.3 billion while net income increased by 18 per cent to $2.1 billion.

Amon stated the company is on track to deliver approximately 50 per cent revenue growth in fiscal 2024, “providing confidence in our ability to execute our long-term targets”.