Huawei gave up Qualcomm chips, but Qualcomm's net profit soared 16 percent to 22.2 billion yuan
After the flagship smartphones of TSMC and other companies were not powerful, Huawei used Qualcomm chips in its flagship smartphones, but with the release of the Huawei Mate60Pro, Huawei directly abandoned the Qualcomm chip and used its own Kirin 9000s chip.
Subsequently, Huawei began using the Kirin 9000 chip in several of its models, including the Huawei Mate 60RS and the Huawei Mate X5.
The Huawei nova12 series uses the self-developed Kirin 9000SL and Kirin 8000 chips, and only the Huawei nova12 Vitality Edition uses Qualcomm chips.
Xu Zhijun also publicly stated that Huawei's chip self-sufficiency rate has reached 70%, and called on more domestic manufacturers to switch to domestic chips. This undoubtedly proves that Huawei's mid-to-high-end mobile phones will replace Qualcomm chips, and the day when Qualcomm chips will be completely replaced is not far off.
Qualcomm also announced that Huawei may not purchase new Qualcomm chips this year and expects shipments to Huawei to decrease by 40 million to 60 million units this year.
However, contrary to expectations, Qualcomm reported its Q1 FY2024 earnings report with revenue of 99.$3.5 billion, compared to $94.4 in the same period last year$6.3 billion, an increase of 5%;
Qualcomm's adjusted net income for the first quarter, non-GAAP, was 310.1 billion yuan, compared with the same period last year (26.8.4 billion yuan) increased by 16%.
According to data released by Qualcomm, its sales and profits have increased significantly: sales of mobile phone chips increased by 16% year-on-year to 66$8.7 billion; Chip sales in the automotive industry reached 59.8 billion yuan, an increase of 31% year-on-year.
As we all know, domestic mobile phone manufacturers are influencing the high-end market, and the ** of flagship mobile phones is getting higher and higher. Qualcomm's licensing fees are calculated based on the sale of mobile phones**, so the more high-end phone manufacturers sell, the more Qualcomm earns.
For example, the Xiaomi 14 series, launched with Qualcomm Snapdragon Gen3 chips, became Xiaomi's most successful model in premiumization, selling millions of units in a short period of time.
There is also Apple, which is a major contributor to Qualcomm's net profit. Apple's cautious evaluation of the iPhone 16 series encourages users to buy more iPhones, such as the iPhone 16 Pro, which naturally contributes to Qualcomm's bottom line.
In addition, Apple has announced a three-year contract extension with Qualcomm to expand its baseband, and Qualcomm will remain the exclusive supplier of Apple's 5G baseband for the next three years.
Automotive chips are another reason for Qualcomm's sales growth.
New energy vehicles are on fire More than 9 million new energy vehicles are produced and sold nationwide, and many of them are used in the intelligent on-board systems of new energy vehicles, such as Qualcomm Snapdragon 8155 chips and 8295 chips.
Since the second half of last year, Qualcomm Snapdragon 8295 chip has become the mainstream, major car manufacturers are scrambling to buy Qualcomm chips, and the same is true for smartphones, with Qualcomm Snapdragon 8295 chips as the main selling point, the first or the first batch of first or first batch of smartphones, all with Qualcomm's Snapdragon 8295 chip as the main selling point.
According to incomplete statistics, the use rate of Qualcomm Snapdragon 8295 chips in new cars is very high, and the sales of Mercedes-Benz E, Xiaomi SU7, Geely Galaxy E8, Zeekrypton 001, Cheyue 07 and other models range from more than 100,000 to more than 600,000.
The sales of high-end mobile phones are large, and Qualcomm has high revenues. The sales of new energy vehicles are large, and Qualcomm has high revenue. Huawei has abandoned Qualcomm chips, but many manufacturers are still using Qualcomm chips.
In addition, Kirin chips have just been revived, and Huawei's mobile phone production capacity has also increased, according to the current sales level, it is difficult to affect the market share of Qualcomm chips.
The Qualcomm Snapdragon 8G 3 chip is really powerful, the overall experience is very good, and its multi-core score is higher than that of the Apple A17Pro, allowing more manufacturers to regain confidence in Qualcomm chips.