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Making Markets EP18: Quick Take on Qualcomm’s Growth Opportunities
by Daniel Newman | December 15, 2021

In this Making Markets quick take, host Daniel Newman talks with Qualcomm CEO Cristiano Amon about the company’s growth opportunities in auto, consumer IoT, networking IoT, and industrial IoT.

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Disclaimer: The Making Markets podcast is for information and entertainment purposes only. Over the course of this podcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such. 

Transcript:

Daniel Newman: And then of course, when you talk about the cloud and the edge, you on the other side, I think what you really are trying to say to everybody out there is the edge is almost infinite. In comparison, cloud is, you and I talked off the record, kind of finite. It’s going to grow and it’s going to scale. And the TAM’s going to certainly expand, but you think about vehicles and things and sensors and basically everything on the planet from our shoes to our watches, to our glasses, to our vehicles and homes all going to be connected. That opportunity’s massive.

Cristiano Amon: It is massive. So maybe if I elaborate a little bit on this conversation on mobile. So one thing that we have done, we basically model to investors. Here’s the Apple contribution assumptions we made. We said, “Look, by 2023 iPhone launching, we’re assuming that we have 20% and then it’s going to be low single digits on QCT going forward.” So it was good to change the conversation because now if it is not the case, that’s upside of the Qualcomm model. But the reality is we have a lot of growth opportunities in auto. We have a lot of growth opportunities in consumer IOT, the networking IOT, the industrial IOT. And that’s a much larger SAM, as you pointed out, because everything is going to be connected. If you look at a 35% CapEx growth of the cloud, you’re going to have to send data to the cloud and you’re going to have to connect everything.

About the Author

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio