Consumers Want Better Phones, Growth Expected Despite Economic Slowdown, Says Qualcomm CEO

Qualcomm CEO Cristiano Amon said he’s seeing growth in chip suppliers as consumers increasingly want “better phones,” he said in an interview Wednesday at the World Economic Forum, even as talk of an economic slowdown dominates the event in the city. Swiss Ski Davos.

“Qualcomm has redefined its mobile strategy to focus on the top and level up, winning steady market share,” said Amon. “For example, with devices like the Samsung Galaxy, we had a 40 percent share and now we have over 75 percent.”

Amon said the smartphone market is “mature,” limiting growth. Risks to the global economy topped the concerns of the world’s business leaders, policymakers and academics at the annual Davos meeting, with some citing the risk of a global recession.

Amon said that throughout the COVID-19 pandemic, the usefulness of smartphones has continued to increase, with increased reliance on Zoom meetings at work, school, and keeping in touch with family.

“People are looking to have better phones, with more capabilities,” Amon said. “These are the things that may keep the mobile market stable even in the face of inflation and the threat of a slowdown.”

In April, Qualcomm forecast third-quarter revenue higher than analysts’ expectations.

Amon said Qualcomm’s technology supports augmented and virtual reality devices, including those made by the Facebook Meta Platforms owner, adding that Qualcomm’s relationship with Facebook is “expanding.”

“Augmented reality could be as big as phones,” he said.

Amon said Qualcomm already has partnerships with Microsoft and TikTok for virtual and augmented reality devices, with more scheduled to be announced.

© Thomson Reuters 2022

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