Need for Better Phones May Potentially Drives Mobile Phone Market Growth
Despite the global economic slowdown, Qualcomm CEO Cristiano Amon expects the chip supplier to expand production and increase profits due to the consumers’ general desire for higher-quality phones that deliver more.
Qualcomm is refocusing its production on the premium segment, and growing its share under the market conditions today. It currently boasts a 75% share in Samsung Galaxy devices compared to the previous 40%.
The market is currently at a ‘mature’ stage, which restricts growth and may lead to stagnation. The economy is in a very risky state worldwide, and the global leaders at the annual Davos forum expressed their concerns about a potential recession.
Smartphones have been gaining strategic importance during the pandemic, as online learning and working became the norm for many. Thus, more capabilities are now required of mobile devices, which drives the mobile market, keeping it relatively stable even as the inflation is rising and an economic slowdown may be imminent.
Qualcomm’s Q3 2022 revenue is projected above the previous forecasts.
One of the innovations is the expansion of Qualcomm’s relations with Facebook in the sphere of augmented and virtual reality, which, Amon believes, may be a major development. The company is already engaged in similar partnerships with Microsoft and TikTok.