Qualcomm's 2011 Revenues 15 Billion Expansion Chips

Recently, Qualcomm has interpreted the financial results for the fourth quarter of fiscal year 2011 and the results of fiscal year 2011 operations. In accordance with US GAAP, Qualcomm’s revenue for the fourth quarter of fiscal 2011 was US$4.12 billion, up 39% over the same period of last year, and up 14% from the previous quarter; total revenue for the fiscal year 2011 was US$14.96 billion, an increase of 36% over the previous year. %.

Smartphones and Emerging Markets as Key Drivers In fiscal 2010, Qualcomm’s total revenue growth rate was 6%, and in fiscal year 2011, this growth rate increased to 36%. Dan Novak, vice president of global marketing and communications at Qualcomm, said smart phones, emerging markets, non-mobile terminal markets and expanded connectivity opportunities are the driving forces behind Qualcomm's continued advancement. In particular, the strong market demand for smart phones and the evolution of emerging markets from 2G to 3G have brought strong demand for various types of mobile terminals. This is the main driving force for the high growth in revenue of Qualcomm in fiscal 2011. These growth factors will also continue and promote Qualcomm’s revenue growth in FY2012.

Dan Novak excitedly shared two data when he read the financial report: First, the average data of several market research companies showed that the cumulative sales of smart phones will reach 4 billion units between 2011 and 2015; second, there is data showing that Nearly 55% of mobile phones sold in the United States are smart phones, with an annual growth rate of 34%.

At the same time, with the evolution of 3G technology and the deployment of 3G networks by operators in various countries, consumer demand for data is also increasing in emerging markets. In particular, consumer demand for social networking, games, and online shopping has greatly driven The development and deployment of 3G in emerging markets has led to the growth of mobile phone sales. In this market, the development of the Chinese market is very rapid. In the third quarter of this year, China's smart phone shipments have leapt to the top in the world. Data shows that in the first 8 months of 2011, 60% of 3G mobile phones sold in the Chinese market were smartphones. In this regard, Dan Nowak believes that "China has a vibrant 3G ecosystem."

In fact, the field of mobile broadband is not only the rapid development of smart phones. According to data from multiple survey companies, the annual growth rate of non-handheld mobile broadband terminal shipments will reach 40% from 2010 to 2015. In 2015, the sales of laptops and tablets will increase to 600 million units. Demand is also an important driving force for Qualcomm’s business growth.

Focus on entry-level smartphones Qualcomm's chips have maintained a leading position in the field of smartphone operating systems. Currently, Qualcomm is making every effort to build a chip system that covers all levels of smart phone terminals. Among them, entry-level smartphones for the mass market, that is, thousands of smart machines have received special attention from Qualcomm.

To this end, in November this year, Qualcomm announced the expansion of its next-generation Snapdragon S4 series mobile processors, enabling OEMs to launch devices based on the next-generation mobile architecture on their respective terminal roadmaps, including entry-level smartphones and even high-end smartphones. And tablet computers. At the same time, Qualcomm also announced that it will upgrade four of its existing Snapdragon S1 mobile processors and provide a new mobile experience for entry-level smartphone users, especially those who have just transitioned from 2G to 3G networks. This move has been welcomed by many production terminal manufacturers.

Android terminal is ranked as the most important part of the whole-system terminal chip by Qualcomm. Up to now, more than 225 Android smart terminals have been jointly launched with more than 30 partners, covering the middle and high-end markets. Huawei announced in the second half of this year that it will provide the Android-based $60 smartphone for the Indian market in the second half of next year, using Qualcomm chips.

At the same time, Qualcomm is still the only chip company in the industry that supports both the Microsoft Windows Phone operating system and the next-generation Windows 8 operating system. In addition, it also supports Nokia's newly released Lumia smartphone based on the Windows operating system.

As for the cooperation with Apple's iPhone series smartphones, Qualcomm kept quiet. But in October this year, the market research company IHS published a report that Apple used Qualcomm's MDM6610 chip in the iPhone 4S. IFixit, a well-known American dismantling organization, also stated that after unraveling the Apple iPhone 4S, it discovered that it used Qualcomm's wireless chipset, and this chipset has been upgraded from the previous iPhone. IHS analyst Wayne Lam predicts that Qualcomm baseband chips will occupy more than 80% of the iPhone market.

Expanding new areas In Qualcomm's financial report, CDMA Technology Group's MSM chip shipments reached 127 million units in fiscal year 2010, an increase of 14% compared to the same period of last year and a 6% increase from the previous quarter; in fiscal 2011, MSM chips Total shipments reached a record 483 million units, an increase of 21% over the same period last year. The growth rate of shipments has declined. In order to maintain the continuous and steady growth of shipments of MSM chips and its leading position in the industry, Qualcomm has also carried out many initiatives.

In the face of new network technologies, Qualcomm constantly updates its products. Its MSM8960 chip is the current advanced chip in the Snapdragon S4. It has created many industry firsts: it is the first chip to use 28nm technology, compared with the traditional 45nm chip, power consumption is about 40% savings; also the first integrated 3G and LTE, and application processor ( AP)'s highly integrated chip; it is also the first chip with Quad-combo connectivity. There are currently 70 models based on this chip being designed.

On the basis of maintaining the traditional advantages of the mobile terminal field, Qualcomm is gradually expanding into the fields of computing, consumer electronics and network connectivity. "After the completion of the acquisition, we have maintained a relatively leading position in the areas of mobile computing, consumer electronics and network connectivity," said Dan Novak.

However, according to a person close to China Telecom, next year China Telecom will launch a 500-yuan WCDMA smart phone and a 700-yuan CDMA/GSM dual-mode dual-standby handset, but because CDMA chips cost 5 to 10 US dollars more than WCDMA of the same specifications. This greatly reduced the profitability of operators, and China Telecom hopes to reduce prices through negotiations.

Therefore, in the future, whether or not Qualcomm can maintain the profit margin created by its high unit price and high sales volume also needs to see the market's response.