Qualcomm recently unveiled bold revenue goals as part of its strategy to lessen reliance on the mobile handset sector. During its 2024 Investor Day, the company revealed plans to achieve $22 billion annual revenue from automotive and IoT segments by FY29. The breakdown foresees $8 billion from automotive and $14 billion from IoT. For context, these segments together brought $8.3 billion in FY24.
Beyond these segments, Qualcomm aims for $4 billion in revenue each from its PC and industrial sectors by 2029. Its expectations for the XR business are slightly more modest, with a target of $2 billion. The remaining IoT business aims to reach $4 billion in revenue. Meanwhile, revenue from the handset segment amounted to $24.9 billion in the latest financial year.
Cristiano Amon, Qualcomm’s president and CEO, stated, “Our focus on diversification and industry-leading technology roadmap has significantly strengthened the company’s growth profile.” As more industries demand generative AI technology, Qualcomm positions itself to tap into a $900 billion market opportunity.
Since 2022, Qualcomm’s automotive success can be linked to launching classes of technology under the Snapdragon Digital Chassis. These include digital cockpits, car-to-cloud connectivity, an auto connectivity platform, and an ADAS/autonomous driving platform. Upon its release, the company expanded its projected market to $700 billion by the end of this decade.
By August, Qualcomm marked its fourth consecutive quarter of record revenues in its automotive business. Revenues increased by 11% year-on-year, reaching nearly $9.4 billion for the quarter. Additionally, the company recently posted $8.7 billion for its fiscal fourth quarter, driven by handset, IoT, and automotive segments.
