Semiconductors are materials that conduct electricity and are found in many different electronic products. They are an important part of the telecommunications industry, a sector that enables communication via phones, tablets and the Internet. Companies in this space are responsible for designing, manufacturing, and providing other companies with the software, technology, and infrastructure to make all of this possible.
One of these companies is Qualcomm, a multinational. Read on to learn more about Qualcomm, including its key business units, financials, and key competitors.
Key points to remember
- Qualcomm is a multinational company known for the design and manufacture of semiconductors and wireless telecommunications products.
- Qualcomm has three main business units: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives (QSI).
- The company competes with Huawei, HTC, Nokia and Samsung in mobile phone technology and MediaTek and Samsung in the semiconductor market.
- Qualcomm’s main competitors in its strategic investment segment are IBM, Hewlett-Packard, Dell, Google, Broadcom, Texas Instruments and Nokia.
Qualcomm: an overview
Qualcomm (QCOM) is known for designing and manufacturing wireless telecommunications products. The company was founded in 1985 by seven people. Based in San Diego, it has approximately 45,000 employees in 170 offices in more than 30 different countries.
The company is led by Cristiano Amon, the company’s CEO since 2021. He also sits on the company’s board of directors. Prior to assuming the role of CEO, Amon served as company president and oversaw Qualcomm’s 5G initiatives.
Qualcomm came in at number 107 on Fortune’s 500 list of companies in 2022, up seventeen spots from the previous year. The company sits between Dollar General and Capital One Financial.
The company reported revenue of $33.6 billion at the end of fiscal 2021 with non-GAAP earnings per share (EPS) of $8.54.
Qualcomm competes in three main revenue segments:
- Qualcomm CDMA Technologies (QCT) which sells the company’s products and services
- Qualcomm Technology Licensing (QTL), which is the patent licensing side of the company
- Qualcomm Strategic Initiatives (QSI) – the side of the company that makes strategic investments
Qualcomm has another revenue segment, called its other segment. This division is made up of odds and ends that don’t fit neatly into its other business units.
Competitors: products and services
Qualcomm’s QCT business segment designs and delivers software and other technologies that are used in smartphones and other devices, including tablets, gaming devices, laptops, routers, data cards as well as consumer electronics and vehicle entertainment systems.
This segment is in direct competition with big names whose Apple, Huawei, HTC, nokia, and Samsung in mobile phone technology. It also competes with the likes of MediaTek and Samsung in the semiconductor market. Since Qualcomm is involved in manufacturing chipsets for electronic devices and peripherals, it also competes directly with AMD, Inteland Nvidia.
Competitors: strategic investments
Through its QSI segment, Qualcomm invests in a series of start-up companies in a range of different industries, including but not limited to automotive, Internet of Things (IoT), telephony mobile, data centers and healthcare.
Qualcomm competes fiercely with traditional personal computer and hardware designers and manufacturers such as IBM, Hewlett-Packardand Dell. The company also faces competition from internet conglomerates such as Google. Other significant competitors in this space include Broadcom, Texas Instrumentsand nokia.
Who is the largest holder of QCOM shares?
The largest owner of QCOM shares, as of Q2 0222, is The Vanguard Group, with more than 105.5 million shares (or almost 9.5% of the company), worth more than 15, $5 billion, split between its various mutual funds and ETFs.
Who is Qualcomm’s biggest competitor?
Broadcom is probably Qualcomm’s biggest direct competitor. Others include AMD, Nvidia, and Intel.
Is Qualcomm an American company?
Yes, Qualcomm is headquartered in San Diego, CA and incorporated in Delaware. Its shares (under the symbol QCOM) trade on US stock exchanges.