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Qualcomm’s Dual-Flagship Strategy Is Reinforcing Its Grip on the Premium Smartphone Market!

Qualcomm’s recent quarterly performance showcased record revenues of $12.3 billion and non-GAAP EPS of $3.50, reflecting robust results in various segments despite challenges. The Qualcomm CDMA Technologies (QCT) unit delivered record revenues of $10.6 billion, propelled by flagship handsets, automotive growth, and Internet of Things (IoT) advancements. However, the company’s outlook is tempered by the constraints in the memory supply chain, especially concerning DRAM, influenced by increased demands from AI data centers. This situation has led to some cautious customer behavior, particularly among Chinese OEMs, in inventory management and chipset procurement. Qualcomm’s Licensing Business (QTL) revenues stood at $1.6 billion, driven by higher handset demand and favorable mixes. The company acknowledges a potential impact from memory shortages on the overall handset industry scale throughout the fiscal year.