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Qualcomm

To invent breakthrough technologies that transform how the world connects, computes & communicates to enable intelligent connectivity



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Align the strategy 5/13/25

Qualcomm SWOT Analysis

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To invent breakthrough technologies that transform how the world connects, computes & communicates to enable intelligent connectivity

Strengths

  • PATENTS: Extensive cellular technology patent portfolio with 140,000+ patents provides significant licensing revenue & competitive moat
  • INTEGRATION: Ability to integrate modems, processors & RF front-end results in superior power/performance advantages in mobile platforms
  • INNOVATION: Consistent leadership in wireless standards development gives 6-12 month time-to-market advantage over competitors
  • DIVERSIFICATION: Growing non-handset revenue streams in automotive ($4B design pipeline) and IoT ($7.7B in FY23) reduce reliance on phones
  • PARTNERSHIPS: Strong relationships with key smartphone OEMs and over 45 automotive customers provide stable revenue base and design wins

Weaknesses

  • CONCENTRATION: Still heavily dependent on smartphone segment (60% of revenue) in a slowing global market with 2% YoY growth forecast
  • COMPETITION: Increasing vertical integration by Apple, Samsung & Google developing in-house chips reduces potential customer base
  • MANUFACTURING: Fabless model creates dependency on limited foundry capacity and advanced nodes from TSMC and Samsung
  • CYCLICALITY: Revenue exhibits seasonal fluctuations tied to smartphone release cycles, creating quarterly earnings volatility
  • FRAGMENTATION: IoT business spans multiple small markets with diverse requirements, challenging unified platform strategy

Opportunities

  • 5G EXPANSION: Global 5G infrastructure buildout creates sustained demand for 5G-capable devices across all market segments
  • AUTOMOTIVE: Connected vehicle growth with ADAS functions expands TAM with projected revenue from $4B pipeline and 30% CAGR
  • AI EDGE: Energy-efficient on-device AI processing creates new use cases leveraging Qualcomm's power efficiency expertise
  • XR ACCELERATION: Emerging mixed reality device category creates new applications for high-performance mobile computing platforms
  • INDUSTRIAL IOT: Industry 4.0 initiatives create demand for robust wireless connectivity solutions with projected 22% CAGR

Threats

  • SEMICONDUCTORS SHORTAGE: Ongoing industry-wide component constraints impact production capacity and increase procurement costs
  • GEOPOLITICAL TENSIONS: US-China trade relations create market access challenges in key growth regions and disrupt supply chains
  • VERTICAL INTEGRATION: Key customers developing in-house chips reduces addressable market, particularly Apple Silicon transition
  • MARKET SATURATION: Smartphone replacement cycles lengthening to 40+ months in developed markets slowing unit sales growth
  • PATENT CHALLENGES: Ongoing litigation and regulatory scrutiny of licensing practices threatens high-margin QTL business model

Key Priorities

  • DIVERSIFICATION: Accelerate growth in automotive & IoT segments to reduce smartphone dependency and leverage wireless expertise
  • PLATFORM STRATEGY: Develop integrated AI+connectivity platforms to create differentiation beyond pure connectivity solutions
  • ECOSYSTEM EXPANSION: Create stronger software & developer tools to increase platform stickiness and counter vertical integration
  • MANUFACTURING SECURITY: Strengthen strategic foundry partnerships to ensure capacity for advanced nodes in competitive market
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Align the plan 5/13/25

Qualcomm OKR Plan

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To invent breakthrough technologies that transform how the world connects, computes & communicates to enable intelligent connectivity

DIVERSIFY

Accelerate growth beyond smartphones to reduce cyclicality

  • AUTOMOTIVE: Expand automotive design win pipeline from $4B to $6B by securing 5 new ADAS platform wins at major OEMs
  • IOT GROWTH: Achieve 20% YoY growth in IoT segment revenue by launching 10+ new targeted platforms for industrial applications
  • XR PLATFORM: Secure 5 major XR device design wins by delivering reference platform with 50% better performance per watt
  • REVENUE MIX: Increase non-handset revenue contribution from 40% to 45% of total QCT revenue by end of fiscal year
AI LEADERSHIP

Establish dominance in on-device AI processing solutions

  • PERFORMANCE: Launch next-gen NPU with 2x AI performance vs competition while maintaining industry-leading power efficiency
  • PARTNERSHIPS: Establish 5 strategic AI partnerships with leading software companies to optimize models for Snapdragon platforms
  • DEVELOPER TOOLS: Launch comprehensive AI developer toolkit with optimized frameworks and reach 50,000 registered developers
  • BENCHMARK: Achieve 40% performance lead in MLPerf mobile benchmarks across all key AI workloads vs nearest competitor
ECOSYSTEM POWER

Strengthen software & developer ecosystem beyond hardware

  • PLATFORM SDK: Deliver unified cross-platform SDK covering smartphone, auto, XR and IoT with 200+ optimized software libraries
  • PARTNERSHIPS: Establish 3 new strategic software partnerships to enhance platform capabilities in AI, security, and connectivity
  • REFERENCE DESIGNS: Release 15 complete reference designs across key verticals reducing customer time-to-market by 30%
  • DEVELOPER PROGRAM: Expand Qualcomm developer program to 100,000 active developers with 25 major ecosystem events
SUPPLY SECURITY

Strengthen manufacturing capabilities and partnerships

  • FOUNDRY AGREEMENTS: Secure long-term capacity commitments from two leading foundries for advanced process nodes through 2026
  • PROCESS LEADERSHIP: Tape out flagship Snapdragon platform on 3nm process technology with 25% power efficiency improvement
  • MULTI-SOURCING: Implement dual-sourcing strategy for 80% of critical components to reduce supply chain vulnerability
  • INVENTORY MANAGEMENT: Optimize inventory levels to 60-75 days to balance supply security and capital efficiency
METRICS
  • Wireless Chipset Market Share: 35%
  • Non-Handset Revenue Growth: 25%
  • Platform Design Win Value: $10B+
VALUES
  • Innovation
  • Execution
  • Partnership
  • Inclusion
  • Integrity
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Align the learnings 5/13/25

Qualcomm Retrospective

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To invent breakthrough technologies that transform how the world connects, computes & communicates to enable intelligent connectivity

What Went Well

  • AUTOMOTIVE: Record automotive revenue of $1.3B in FY23, up 25% YoY with $4B+ design win pipeline
  • PROFITABILITY: Maintained 34% operating margin despite market headwinds through efficient cost management
  • DIVERSIFICATION: IoT revenue reached $7.7B in FY23, growing at 15% as part of strategic diversification
  • EXECUTION: Successful Snapdragon 8 Gen 2 launch with all major Android flagships adopting the platform
  • LICENSING: QTL segment delivered stable $6.4B revenue with 68% EBIT margin providing steady cash flow

Not So Well

  • SMARTPHONE WEAKNESS: Handset revenue declined 14% YoY due to macro conditions and inventory adjustments
  • CHINA: Significant weakness in China market with regional smartphone sales down 11% impacting core segment
  • INVENTORY: OEM inventory corrections led to $2.9B revenue impact in semiconductor segment during FY23
  • SEASONALITY: Q1 revenue guidance below estimates driven by typical seasonality and macro uncertainty
  • COMPETITION: Lost some mid-range design wins to MediaTek's competitive Dimensity offerings

Learnings

  • DIVERSIFICATION: Handset market volatility reinforces need to accelerate automotive and IoT growth
  • AI IMPORTANCE: On-device AI capabilities becoming primary differentiator for premium smartphone designs
  • PLATFORM APPROACH: Success of integrated platforms versus discrete components validates strategy
  • FOUNDRY RELATIONSHIPS: Strategic partnership with top foundries crucial during ongoing capacity constraints
  • OPEX DISCIPLINE: Maintaining operating expense discipline essential during cyclical market downturns

Action Items

  • EXPAND AUTOMOTIVE: Double down on ADAS solutions to accelerate automotive segment beyond 25% CAGR
  • AI CAPABILITIES: Enhance on-device AI performance 2x vs competition in next-gen Snapdragon platforms
  • OPERATIONAL EFFICIENCY: Implement additional cost optimization measures to protect margin targets
  • INDUSTRIAL IOT: Develop targeted solutions for high-growth industrial IoT segment with 10+ new products
  • PARTNER ECOSYSTEM: Strengthen strategic partnerships with key OEMs to secure design win pipeline
Qualcomm logo
Overview

Qualcomm Market

  • Founded: July 1985 by Irwin Jacobs and six others
  • Market Share: ~33% global smartphone SoC market
  • Customer Base: Global OEMs, automotive, IoT manufacturers
  • Category:
    Semiconductor Technology
  • Location: San Diego, California
  • Zip Code: 92121
  • Employees: Over 51,000 global employees
Competitors
MediaTek logo
MediaTek
Broadcom logo
Broadcom
Apple logo
Apple
Samsung logo
Samsung
NVIDIA logo
NVIDIA
Products & Services
No products or services data available
Distribution Channels
Qualcomm logo
Align the business model

Qualcomm Business Model Canvas

Problem

  • Complex wireless connectivity requirements
  • Power consumption constraints in mobile devices
  • Integration challenges across RF components
  • Processing requirements for on-device AI
  • Time-to-market pressure for OEMs

Solution

  • Integrated connectivity platforms
  • End-to-end reference designs
  • Optimized hardware-software solutions
  • Heterogeneous computing architectures
  • Comprehensive IP portfolio licensing

Key Metrics

  • Market share across product categories
  • Design win pipeline value
  • Licensee compliance rate
  • Performance per watt benchmarks
  • Revenue diversification percentage

Unique

  • Full-stack wireless expertise
  • Comprehensive cellular patent portfolio
  • System-level integration capabilities
  • Leading standards participation
  • RF front-end to processor optimization

Advantage

  • 140,000+ patent portfolio
  • Long-term foundry partnerships
  • Decades of wireless R&D investment
  • Established OEM relationships
  • Full RF-to-computing stack integration

Channels

  • Direct OEM relationships
  • Reference design partners
  • Licensing agreements
  • Industry standards bodies
  • Developer ecosystem programs

Customer Segments

  • Smartphone manufacturers
  • Automotive OEMs and Tier 1 suppliers
  • PC and XR device makers
  • IoT solution providers
  • Consumer electronics manufacturers

Costs

  • R&D investment (22% of revenue)
  • Semiconductor manufacturing costs
  • Patent portfolio maintenance
  • Sales & technical support operations
  • Licensing compliance enforcement
Qualcomm logo
Overview

Qualcomm Product Market Fit

1

Superior wireless performance

2

Comprehensive platform integration

3

Industry-leading power efficiency



Before State

  • Fragmented wireless components
  • Lower power efficiency
  • Limited connectivity options
  • Complex RF designs

After State

  • Integrated connectivity solutions
  • Optimized power consumption
  • Advanced wireless performance
  • Simplified RF integration

Negative Impacts

  • Battery drain
  • Slower data speeds
  • Higher device costs
  • Longer time-to-market
  • Integration challenges

Positive Outcomes

  • Extended battery life
  • Enhanced user experience
  • Reduced device costs
  • Accelerated time-to-market
  • Improved reliability

Key Metrics

33% smartphone SoC market share
36% RF front-end market share
$1.3B automotive revenue

Requirements

  • Chipset integration
  • Advanced process nodes
  • Antenna design expertise
  • Software optimization
  • System-level approach

Why Qualcomm

  • Vertical integration strategy
  • Continuous R&D investment
  • Collaborative customer approach
  • Early standard development
  • Platform-based solutions

Qualcomm Competitive Advantage

  • More patents than competitors
  • Full-stack development capability
  • System-level optimization
  • Decades of wireless expertise
  • Fabless flexibility

Proof Points

  • Industry-leading power efficiency
  • First commercial 5G deployments
  • Smartphone design wins
  • Growing automotive presence
  • IoT ecosystem expansion
Qualcomm logo
Overview

Qualcomm Market Positioning

What You Do

  • Advanced wireless chips & connectivity technology

Target Market

  • Smartphone, auto, IoT & computing manufacturers

Differentiation

  • Integrated modem+processor solutions
  • Advanced RF front-end expertise
  • Leading wireless patent portfolio
  • 5G leadership

Revenue Streams

  • Chipset sales
  • Technology licensing
  • Patent royalties
  • Platform solutions
Qualcomm logo
Overview

Qualcomm Operations and Technology

Company Operations
  • Organizational Structure: Business unit focused on key verticals
  • Supply Chain: Fabless model, works with TSMC, Samsung, GlobalFoundries
  • Tech Patents: 140,000+ granted/pending patents worldwide
  • Website: https://www.qualcomm.com/
Top Clients
Qualcomm logo
Competitive forces

Qualcomm Porter's Five Forces

Threat of New Entry

LOW: Significant barriers to entry including $5B+ R&D investment required, patent portfolio obstacles, and long-term OEM relationships

Supplier Power

HIGH: Dependent on limited foundry capacity from TSMC & Samsung who have significant leverage over pricing & allocation with 80% of advanced nodes market

Buyer Power

MEDIUM: Top 5 smartphone OEMs account for 70% of market volume, but Qualcomm's IP position and differentiated technology partially counterbalances this

Threat of Substitution

LOW: Few viable alternatives for high-performance integrated connectivity solutions with comprehensive patent coverage in cellular technology

Competitive Rivalry

HIGH: Direct competition from MediaTek (25% smartphone share), NVIDIA (automotive), Broadcom (RF) with increasing vertical integration by Apple & Samsung

Qualcomm logo
Drive AI transformation 5/13/25

Qualcomm AI Strategy SWOT Analysis

To invent breakthrough technologies that transform how the world connects, computes & communicates to enable intelligent connectivity

Strengths

  • PLATFORMS: Snapdragon platforms already optimized for on-device AI with dedicated neural processing units scoring 2.5x energy efficiency
  • PARTNERSHIPS: Established collaborations with leading AI companies including Google, Microsoft and Meta for mobile AI optimization
  • ACQUISITION: Strategic acquisition of NUVIA provides custom CPU core expertise for AI workloads with 40% performance gain per watt
  • DISTRIBUTION: Installed base of 2B+ devices running Qualcomm technology creates immediate deployment channel for AI innovations
  • POWER EFFICIENCY: Leadership in performance-per-watt metrics (2x vs competitors) enables AI processing within mobile power constraints

Weaknesses

  • TALENT: Limited AI researcher talent pool compared to hyperscalers with 15-20x larger dedicated AI research staff resources
  • CLOUD EXPERIENCE: Less expertise in data center AI deployment compared to NVIDIA's dominant position with 80% market share
  • SOFTWARE ECOSYSTEM: Less developed AI software tools and developer ecosystem compared to established frameworks like CUDA
  • DATA ACCESS: Limited access to large datasets needed for AI model training compared to consumer-facing tech companies
  • COMPUTE RESOURCES: Smaller in-house computing resources for large model training compared to hyperscale cloud providers

Opportunities

  • EDGE AI: Growing demand for on-device AI processing to meet 1ms latency needs, privacy requirements, and offline functionality
  • GENERATIVE AI: Mobile-optimized large language models create new use cases for on-device AI acceleration with 70% YoY growth
  • HETEROGENEOUS COMPUTING: AI workloads benefit from Qualcomm's expertise in heterogeneous computing across CPU/GPU/NPU
  • VERTICAL INTEGRATION: Ability to optimize entire AI stack from silicon to algorithms creates differentiation vs point solutions
  • SPECIALIZED SILICON: Growing need for custom silicon solutions for specialized AI workloads across industries leverages ASIC expertise

Threats

  • COMPETITION: Leading AI chip companies like NVIDIA expanding from cloud into edge computing threatens market position
  • HYPERSCALERS: Cloud providers developing custom silicon in-house reducing reliance on third-party semiconductor solutions
  • COMMODITIZATION: Risk of AI processing becoming standardized commodity feature with declining margins as happened with GPUs
  • FRAGMENTATION: Multiple competing AI frameworks and approaches creating market uncertainty and development complexity
  • REGULATORY CONCERNS: Growing privacy and regulatory scrutiny of AI applications could limit adoption and use cases

Key Priorities

  • EDGE-CLOUD COLLABORATION: Develop optimized edge-cloud AI solutions that leverage on-device processing with cloud capabilities
  • VERTICAL SOLUTIONS: Create industry-specific AI platforms for automotive, XR, and IoT with optimized hardware-software stack
  • MODEL OPTIMIZATION: Invest in techniques to efficiently run large AI models on resource-constrained devices to enable new use cases
  • DEVELOPER ECOSYSTEM: Expand AI tools, SDKs and reference implementations to increase platform adoption across verticals
Qualcomm logo
5/13/25

Qualcomm Financial Performance

Profit: $8.9B net income for fiscal 2023
Market Cap: Approximately $170 billion
Stock Symbol: QCOM
Annual Report: View Report
Debt: $15.3B long-term debt
ROI Impact: 22.5% return on investment

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