Chipmaker Qualcomm reported a 37% increase in revenue in the June quarter despite a challenging macro environment, announcing the extension of its patent licensing agreement with Samsung for its Galaxy devices.
The company posted revenue of $10.93 billion for its third quarter (April-June period) and its handset business grew 59% to $6.15 billion, thanks to the strength of its Snapdragon product portfolio, particularly in the premium and high-end smartphone tiers.
“We are delighted to report strong quarterly results, with record QCT Automotive and IoT revenues in a challenging macroeconomic environment,” said Cristiano Amon, Qualcomm President and CEO.
“We are also thrilled to announce the extension of our patent licensing agreement with Samsung and the expansion of our strategic partnership to deliver premium consumer experiences for Samsung Galaxy devices,” added Amon.
Qualcomm said it was still on course to grow its handset business slightly below 50% this year.
Akash Palkhiwala, CFO of Qualcomm, said they are eagerly awaiting the global forecast for 3G, 4G and 5G handsets.
“We now expect global handsets in the 2022 calendar to decline by a mid-single-digit percentage on an annual basis, including 650 million to 700 million 5G handsets. Our forecast reflects the continuation of trends that have had a negative impact on handset volumes exiting the June Quarter,” Palkhiwala added.
IoT revenue grew 31% year-over-year to $1.8 billion.
“We had another record quarter in automotive with revenue of $350 million with 38% year-over-year growth driven by the launches of our digital cockpit products,” he said. note.
During the quarter, the company returned $1.3 billion to shareholders, including $842 million, or $0.75 per share, in cash dividends paid and $500 million through the repurchase of 4 million ordinary actions.
Qualcomm is also “well positioned to be the company bringing advanced connectivity, data processing and intelligence to the edge, enabling cloud-edge convergence,” Amon noted.
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