QCOM’s auto category revenues could hit $5 billion
Qualcomm (QCOM) is among the companies betting on 5G technology to increase future revenue opportunities. The company has been providing updates on its 5G development efforts, saying recently that it was on track to enable superfast 5G connections on mobile handsets next year.
While mobile is Qualcomm’s core market, the company has diversified into the IoT (Internet of Things) and automotive industries. Qualcomm told Barron’s recently that it was expecting its IoT-focused business to bring in more than $1.0 billion in revenues in fiscal 2018, which ends in September. The company expects to generate $5.0 billion in revenues from its auto category in fiscal 2018.
Intel subsidiary partners with Baidu on auto tech
Intel (INTC) is also seeking revenues in the automotive industry. In 2017, the company acquired Israeli chipmaker Mobileye to strengthen its auto push. In July, Mobileye partnered with Baidu (BIDU) on self-driving technology.
Baidu has developed an open-source self-driving platform called Apollo and is on track to begin selling self-driving shuttle buses in China. Intel is also a technology partner of Waymo, Alphabet’s (GOOGL) self-driving subsidiary.
Revenues fell 5%
Qualcomm (QCOM) generated $22.3 billion in revenues in fiscal 2017, down 5.0% from the previous year. The company generates most of its revenues from selling chips while most of its profit comes from licensing patents.
Earlier this year, Qualcomm reached a new patent licensing agreement with Samsung (SSNLF). However, the company remains in dispute with Apple over patent licensing terms. Samsung and Apple are the world’s top smartphone companies, shipping 321.3 million and 214.9 million smartphone units last year, respectively, according to Gartner.