The relationship between Qualcomm and Apple has become stale, and the opportunities for cooperation between the two sides are getting smaller and smaller. It is reported that Qualcomm will stop cooperation with Apple's new products, and Qualcomm will broaden its business scope and will turn its attention to the Chinese market. Just as China is also ambitious about 5G technology, Qualcomm will take this opportunity to become bigger and stronger in the Chinese market.
The relationship between Qualcomm and Apple has been entangled, and the lawsuits of both sides are considered to be a wonderful work in the technology industry. Recently, the news about Qualcomm's acquisition of NXP and the malicious mergers and acquisitions of Broadcom is even more rumored. According to reports, Qualcomm or stopped cooperation with Apple's new products, and turned to the Chinese market. Qualcomm's various core mobile services have caused it to rely too much on technology companies such as Apple. Now its diversification strategy will help Qualcomm broaden its business scope and increase profit revenue.
Qualcomm began to engage with Chinese OEMs (original equipment manufacturers), and its dependence on Apple is gradually decreasing. Not only that, but Chinese manufacturers are also growing faster than Apple. Qualcomm said that Chinese manufacturers are expected to occupy the main market of global smartphones in FY 2022. This is not a hole in the matter - Qualcomm has established itself in China's 5G market, and Chinese manufacturers will also go global. In addition, Chinese manufacturers such as Vivo, Oppo, and Xiaomi have also developed rapidly, especially in Asia.
China's smart phone market is gradually moving from the low-end to the middle and high-end, which has brought tremendous development opportunities for Qualcomm. Qualcomm's Snapdragon 600 and 800 series chips have already dominated the Chinese market, and now the already large Chinese market will use more Qualcomm chips. Vivo, Oppo, Xiaomi and other manufacturers will be equipped with Qualcomm's high-end chips, and its high-end mobile phones will also increase sales. Qualcomm also mentioned that its QCT (Qualcomm CDMA Technologies) division's revenue in China's OEMs in FY2017 is twice that of Apple, with a compound annual growth rate of 17%.
Qualcomm's leading position in the 5G field is unparalleled, and China is also ambitious about 5G technology, so Qualcomm will further expand and strengthen in the Chinese market. The first batch of 5G mobile phones will undoubtedly launch the high-end series first, and we may be able to see the high-end 5G mobile phones in 2020 or 2021.
The diversified development in the front of the RF, automotive, Internet of Things and other fields has solidified the foundation of Qualcomm. Even if an industry declines, Qualcomm's development will not be seriously affected. These non-core businesses are expected to contribute approximately $7 billion to $8 billion in revenue in FY 2019 and grow steadily at 25% in FY2017-FY19. A few months ago, the patent lawsuit between Qualcomm and Apple was still in full swing. But Apple may seriously ignore one point: if Qualcomm can do not rely on Apple in a year, then Qualcomm can gain the upper hand and lead the development of 5G technology. Having said that, who can think of Qualcomm investing so much energy in these non-core businesses?
However, the political relationship between China and the United States is complicated, and abandoning Apple and switching to the Chinese market is also a risky move. Qualcomm has paid a fine of $1 billion to China. For China, which is eager to lead the development of 5G, Qualcomm is another outstanding in the 5G field. It can be said that the Chinese market is a hot potato, and Qualcomm just put on gloves at this time to catch the mountain.
Guangdong Ojun Technology Co., Ltd. , https://www.ojunconnector.com